What will Greece’s debt crisis mean for the world economy?

GREECE (Reuters) – Greek Prime Minister Alexis Tsipras wants to boost growth in the country to 7 percent this year, the fastest rate of growth since the financial crisis of 2008.

But he has said he will not push Greece out of its bailout program and needs to find a way to ease debt-related austerity measures.

He will also push through an agreement with creditors on the length of Greece’s bailout extension, a source in the government told Reuters on Tuesday.

The deal, expected to be announced on Thursday, will require Greece to repay more than €5 billion ($6.5 billion) to the IMF within the next few weeks, according to the source.

The country has also agreed to pay an additional €1 billion to the European Union (EU), which was due to receive €3 billion.

A new Greek debt deal would be the first in more than a decade, and would give Athens more leverage to negotiate a long-term debt relief deal.

Tsipars will have to show his ability to negotiate such a deal.

The Greek economy is forecast to grow by 3.5 percent this fiscal year, down from 4.5 per cent last year, while inflation is expected to rise to around 9.2 percent.

The government has already announced it will slash its unemployment rate to 4.3 percent this month from 4 percent, while the country’s biggest lender has said it is ready to extend its bailout to 2019.

Greece is the only euro zone country to default on its debts and has missed two debt payments this year and has been forced to make payments in the form of bank deposits.