The FT has obtained a copy of Greece's latest proposal for bailout funds.
The Greek government headed by Alexis Tsipras aims to reign in deficits by cracking down on tax evasion and corruption while reversing cuts to pensions and labour market reforms, according to a draft proposal obtained by the FT.
The bulk of marginal new funds -- a whopping €875m in projections -- will come from audits of offshore bank transfers with another €600m from a lottery scheme that aims to compel customers to demand VAT receipts. In turn, low income pensioners will get another €600m and €326m in cuts due to a deficit clause will be reversed in pensions.
The document also includes hikes in the minimum wage and strengthened collective bargaining provisions, which would undo previous reforms.
The early reaction from the proposal is negative despite Tsipras government calculations that it could produce as much as a 3.9% primary surplus. The Troika/Three Institutions are unlikely to believe the tax evasion crackdown will be effective.
In any case, Greece still appears to be headed toward a cash crunch on April 9 when IMF funds are due to be paid. An official cited by the FT said he sees no chance of an agreement until at least April 24 when meetings are scheduled in Riga, Latvia.