Greece has reached an agreement with its lenders on key labour reforms, spending cuts and energy issues, moving closer to clinching a preliminary deal before a meeting of euro zone finance ministers on April 7, Reuters reports on Wednesday citing sources close to the talks.

Greece will cut pension spending by up to one percent of GDP in 2019, two officials told Reuters on condition of anonymity. Lowering the tax-free threshold to about 6,000 euros to save roughly another 1 percent of GDP has also been agreed, an EU official said.

On labour reforms, Greece will not be forced to liberalise mass layoffs further, as initially demanded by the IMF, two officials said. Collective bargaining, which was weakened as part of bailout reforms in 2012, is expected to be revived after the country’s current bailout programme expires in 2018.

Greece has also agreed to sell some of its main power utility PPC coal-fired plants as part of bailout reforms, two sources close to the talks said. One of the sources said that Greece will have to sell up to 40 percent of its coal-fired plants.


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