Update 8 | It's official: a deal has been reached

Deal -JM #EuroSummit #Greece

— Joseph Muscat (@JosephMuscat_JM) July 13, 2015

In a press conference held following the marathon European Council summit, European Commission president Jean-Claude Juncker triumphantly announced that “there is no Grexit.” 

On his part, European Council president Donald Tusk said that Eurozone leaders agreed that Greece should receive a new €50 billion aid programme.

Announcing an “aGreekment,” Tusk said that Eurozone leaders unanimously reached an “agreement in principle” but negotiations on a new ECM programme hinge on the approval in a number of national parliaments including Greece.

#EuroSummit intermission for final consultations -JM

— Joseph Muscat (@JosephMuscat_JM) July 13, 2015

#ThisIsACoup now trending 1st in Greece, 1st Netherlands, 2nd Spain, 2nd Ireland, 3rd Belgium, 5th UK, 6th Portugal, 9th Germany - @asteris

— Conflict News (@rConflictNews) July 12, 2015

The council president said the agreement will also see Greece receiving a bridge loan to help Greece cover its debt repayments this summer.

#EuroSummit resumes. Here we go again -JM

— Joseph Muscat (@JosephMuscat_JM) July 13, 2015

Welcoming Greece’s “constructive position,” Tusk said the deal includes “strict conditions.”

Eurogroup chair Jeroan Dijsselbloem said that the Greek parliament will “quickly legislate on a number of issues” which will rebuild trust, adding that market and labour reforms must also be introduced.

€50bn of Greek assets will be transferred to a new fund and Dijsselbloem explained that the money from privatisations will repay debt and recapitalization of banks.

He said the “total agreement and prior actions” must be approved by the Greek Parliament by Wednesday, which will be followed by a Eurogroup meeting and the approval by a number of European “sovereign” parliaments. Then firm negotiations can take place over a €50 billion bailout from the ESM, where the issue of debt restructuring can also take place.

A deal was reached at 9am with Tusk tweeting that the "Euro Summit has unanimously reached agreement. All ready to go for ESM programme for Greece with serious reforms & financial support."

Second break for consultations. Some progress at #EuroSummit but still way to go -JM

— Joseph Muscat (@JosephMuscat_JM) July 12, 2015

At 8am the EU summit on Greece's bailout talks broke the record for the longest summit held since 2000. The record for the longest summit was previously held by the 2000 Nice Treaty which lasted 19 hours.

Reports of an agreement "almost reached" started going round at 8:45am while the Belgian prime minister tweeted "agreement".

Talks broke off for the "final consultations" at 6am, Prime Minister Joseph Muscat tweeted after a 14-hour marathon session.

Alexis Tsipras was on yet another call to Athens as the leaders worked on the sixth draft of the proposals. According to an EU official, the 'time-out' has been dropped. Tsipras, who wanted the IMF axed from any Greek plan, has now conceded to it but talks are still ongoing on the privatisation fund.

Several member states are considering a €50 billion figure as "exorbitant" but Germany appears to be adamant on this one. The figure represents valuable assets which Greece should place in an external fund.

As the hours drag on, one thing is certain: Tsipras was made to face draconian demands. Writing in the New York Times, Nobel prize winner Paul Krugman denounced "the pure vindictiveness, complete destruction of national sovereignty, and no hope of relief".

Earlier

Ongoing discussions on the draft document prepared by the Eurogroup may lead to a removal of the ‘time-out’ clause if an agreement is reached tonight.

According to an EU official, a discussion is also underway to see whether an acceptance by Greece to a proposal to transfer “valuable assets” to an external fund would result in the removal of the time-out clause.

The draft document being discussed by the leaders reads: “In case no agreement could be reached, Greece should be offered swift negotiations on a time-out from the euro area with possible restructuring.”

At 4am, the EU summit was still underway with two breaks in between to allow talks on the side while Alexis Tsipras also engaged in discussions with Athens. The discussions resumed at 4.15am, after a four-hour break and "a compromise proposal". Living up to his newfound fame as 'chief tweeter' - labelled so by the Guardian - Muscat promptly tweeted that the summit had resumed.

Meanwhile in the press centre, reporters, camerapersons and photographers did their best to get some rest:

Anti-austerity demonstrators gathered in Athens this evening awaiting the decision of euro area leaders on Greece’s bailout. After a 61% referendum result against further austerity measures in Greece, Alexis Tsipras has now made a complete U-turn.

If an agreement on a document drafted by the Eurogroup is reached, Greece is set to start legislating all reforms which the Syriza government has so vehemently opposed.

The leaders took a second break at around 11.30pm and word around is that the summit will go on until around 4am. Talks on privatisation were temporary suspended as leaders failed to agree. Meanwhile on Twitter, the hash tag #thisisacoup - targeted at Tsipras - is gaining momentum.

Prime Minister Joseph Muscat tweeted that some progress was registered, but still "way to go".

The 19 Euro area leaders have prepared themselves for a long night, with one EU official saying that “the decision” cannot be prolonged any longer. In brief the document tables two options: the first one would see Greece giving in to the demands of its creditors and start legislating on the reforms ‘to qualify’ for a Eurogroup approval … or else face ‘timeout’ – which is a Grexit.

Finland, Germany, Slovenia, Lithuania, Slovakia and Austria are the six member states reportedly making the hardest demands to Tsipras, who must push legislation through parliament before funds are released to avert a state bankruptcy and starting negotiations on a third bailout programme.

Angry voters have also taken to Twitter using the hash tag #TsiprasLeaveEUSummit. The Guardian quoted a veteran Greek politician from the centre left saying that Syriza was “now split in two”.

“What is sure is that we are going to have dramatic political developments,” Nikos Bistis was quoted as saying.

A political commentator was also quoted as saying: “Greece can bend up to a point. But after that there is no bending, only breaking. The breaking point may well come when Tsipras realises he has lost most of his parliamentary group.”

Quoting an unnamed top official, the Guardian reported that Tsipras was given “extensive mental waterboarding” in a meeting with European Council President Donald Tusk, German Chancellor Angela Merkel and French President Francois Hollande.

“Tsipras was told that Greece will either become an effective “ward” of the eurozone, by agreeing to immediately implement swift reforms this week. Or, it leaves the euro area and watches its banks collapse,” the Guardian reported.

Reuters is now reporting that Tsipras “is set to begin a bruising week by clearing out party rebels opposed to an austerity package that will have to go through parliament within days, people close to the government say”.

A Guardian graphic has now placed Malta – alongside Finland, Lativa, Lithuania, Germany, Netherlands, Belgium, Slovakia and Austria – amongst the countries open to a Grexit. Five countries – Ireland, Slovenia, Portugal, Cyprus and Estonia – have been labelled as “wavering, but would prefer to avoid a Grexit”. Only France, Italy, Spain and Luxembourg seem to want to avoid a Grexit at all costs.

Early trade opening on the other side of the world saw the euro fall to $1.1097 from $1.1162 in late trade on Friday.