Greece and creditors crafting a staff level accord

FXStreet (Córdoba) - Greece and its creditors have started crafting staff level accord, Bloomberg and Reuters report, citing a Greek government official.

According to this official, the proposed agreement includes overhauling Greece's VAT tax, but avoids 'recessionary measures'. The accord would include lower primary surpluses targets, a long term solution on debt and changes, but not cuts, to Greece's pension system.

The official cited differences between the EU and IMF. "There remains a problem with the differing stance among the institutions. If an agreement by the IMF was not needed, the deal would have closed by now."

Some analysts are advising caution as Greek government sources have been more optimistic about reaching a deal than EU/IMF members in the past.