Dodging bankruptcy comes at a price for Greece

Greece reaches preliminary deal to avoid bankruptcy

ATHENS-- Greece reached a preliminary deal on Monday with its creditors for its third financial bailout in five years. Greece would get $96 billion, but the government had to agree to tax increases and pension cuts that voters overwhelmingly rejected just a week ago.

Greece has once again dodged bankruptcy, but at the cost of a humiliating back down.

Greece's radical, left wing Prime Minister Alexis Tsipras had likened the demands of foreign creditors to blackmail. Just days away from running out of money, Greece was forced to capitulate to another round of tax hikes and public spending cuts.

There is a new demand that it sell off state assets worth more than $50 billion -- including airports and a power company -- to help pay down Greece's debts.

Iannis Barbetakis earns around $7 a day by scavenging garbage. He told CBS News that whoever has money has power, and since they have the money nobody can stop them.

A quarter of the Greek workforce is unemployed. Its economy is in tatters and it's the very poor who are suffering the most.

Haris Theoharis, who used to be Greece's chief tax collector, told CBS News tax evasion costs the country's inefficient economy up to $12 billion a year.

New Greece bailout deal with EU requires more cutbacks

"Unfortunately, this is not a very good deal," he said.

But he still believes Greece's creditors have been too harsh.

"They're actually pushing us to the limit. This is too much," he said. "We are in a European Union, we have to see each other as partners, and we shouldn't face demands that are plainly wrong."

Greece's banks, which have been shut for two weeks now, will probably stay closed for several days to come. And though Greece's mountain of debt will now be around $400 billion, it did not win any immediate debt relief from its creditors.

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