GREECE’S Syriza government admitted yesterday that it had reluctantly agreed to “harsh” economic reforms in return for a debt bailout.

Athens has offered a series of measures such as tax increases to persuade creditors, including other EU states and the International Monetary Fund, to extend credit ahead of a June 30 payment deadline.

Worried depositors withdrew an estimated €4 billion (£2.8 billion) from Greek banks last week as anxiety mounted over the crisis.