Greece's cash-for-reform proposals in a nutshell

Athens - Greece presented new reform proposals on Monday which its eurozone partners cautiously welcomed as a possible basis for an agreement to unlock bailout funds needed to avert a possible debt default.

Here is a summary of the proposal as spelled out by Greek government officials.

Pensions

Early retirement to be curbed gradually from 2016 to 2025, but exemptions for some specific categories to be maintained, including for arduous professions and mothers with disabilities.

A special benefit for some low-income pensioners, amounting to between €57 to €230 a month to remain but to be replaced from 2020 by new protection framework for low pensions. This is a key point of friction between Greece and its lenders, who wanted it scrapped.

VAT

Greece to keep three value added tax rates of 23%, 13% and 6%. Electricity and restaurants to be taxed at 13% instead of being raised to 23%, as lenders had demanded, while medicines to be cut to 6% rather than raised to 11% as sought by lenders. Officials said lenders were asking for two rates of 11% and 23%.

Tax hike for higher earners

Solidarity tax for higher income earners (revenues above €50 000 to be increased, while lowering the tax for revenues below €30 000. It introduces a solidarity tax of 8% on revenues above €500 000.

Corporate, luxury tax hikes

Tax plans to include: a) a special levy of 12% on businesses that post a profit of over €500 000; b) Increases in luxury tax on pools, planes, big cars and private boats over 10 meters; c) a tax on gambling slot machines (VLTs).

Privatisations

Privatisations to impose a minimum amount of investment, a commitment by investors to promote the local economy and a participation of public equity.

The transfer of Greece's state equity in Greek telecoms operator to the country's privatisation agency will not be part of the lenders' prior actions.

Greece will not privatise its power grid operator (ADMIE) nor its dominant power utility PPC, as requested by creditors.

Public sector wages

No cuts to public sector wages from levels at end-2014.

Spending cuts

Cut defence spending by €200m.

Primary budget surplus

Primary budget surplus of 1% in 2015 and 2% in 2016, compared with 3% and 4.5% agreed to by previous Greek governments.

Bonds

Greece repeated demand for eurozone to lend it money to buy back €27bn of its bonds from European Central Bank - effectively rolling-over the debt on more favourable terms.

Investment

Greece wants deal to include financing of infrastructure and new technologies through an investment package from the European Commission and the European Investment Bank.

Numeral targets

According to leaked proposals on Greek websites, Greece also planned to increase pension contributions to cash in €605m this year and €1.56bn next year.

Spending cuts and tax revenues would produce budget measures equivalent to €2.69bn or 1.51% of GDP this year and €5.2bn or 2.87% of GDP in 2016, up from €1.99bn or 1.1% of GDP and €3.58bn or 2% of GDP previously.