Greek crisis deepens further as bailout extension rejected - live updates
Euro finance ministers have refused to extend Greece's bailout following shock decision to hold a referendum
- Early-evening summary: Bailout on the brink
- In Athens; Tensions are rising
- Lunchtime summary: Eurozone ministers look to Plan B
- Bank queues in Athens ... but other areas calm
- Introduction: Shock referendum called
7.05pm BST
Dominique Strauss-Kahn, who ran the IMF when the first Greek bailout was arranged, has published a 'mea culpa' about the mistakes the Fund made:
He's admitted that it should have pushed other eurozone countries to do more to help Greece and fought against the push for tough austerity, admitting that it also miscalculated the impact of such "pro-cyclical adjustment".
Greece : On learning from one's mistakes http://t.co/LU3p3RcPal #Greece #EU
6.53pm BST
Michel Sapin is going out of his way to argue that a deal between Greece and its creditors can yet be revived.
Big contrast between Sapin & @J_Dijsselbloem. France stressing Greece will stay in euro, that talks can continue
6.51pm BST
More is coming in about the telephone conversation the Greek prime minister Alexis Tsipras had this afternoon with the German chancellor Angela Merkel and French president Francois Hollande.
"No it isn't.
This is the birthplace of democracy. We are a sovereign country and will not be told what question to pose in this referendum. The referendum wiill take place regardless of whatever the decision the Eurogroup takes."
6.47pm BST
French fin min #Sapin said that France could work from tomorrow as a mediator to reach an agreement with #Greece. #Greferendum #Eurogroup
6.46pm BST
Meanwhile, France's Michel Sapin is insisting, adamantly, that a deal can be salvaged.
Sapin: I will repeat, France is on hand at any time to find a solution for #Greece. Before the 30th, on the 30th, after the 30th...
6.46pm BST
Here's your 15 minute warning -- eurogroup president Jeroen Dijsselbloem will hold a closing press conference at 8pm Brussels time (9pm Athens, 7pm UK).
Hopefully we'll learn what measures the eurozone will take to preserve financial stability given the dramatic escalation of the Greek crisis:
#Eurogroup press conference at 20:00 Brussels' time #Greece #Greferendum
6.43pm BST
Sapin: I will say with force - what happened today does not mean that #Greece has left the #Eurozone.
6.42pm BST
The remaining 18 finance minister have just ended their meeting -- Michel Sapin of France is giving a briefing now (livefeed here).
He is telling reporters that France is ready to restart talks at any time with Greece. Nobody, least of all France, wants Grexit.
6.37pm BST
A quick recap of the last few few hours.
"It is the responsibility of the Greek government to meet its obligations, firstly with the IMF,...It is a responsibility and it doesn't go away."
One-third of #Greece ATMs has run out of banknotes since Fri night, outflows at a1 bln so far (via @MegaGegonota) #ecb #ela #Greferendum
6.09pm BST
Very surreal atmosphere in press room here in Brussels. One journalist in tears. Most reporters shocked euro rupture is happening. #Greece
5.56pm BST
Helena Smith, our Athens correspondent, has more details of Tsipras's call to Merkel and Hollande today.
Tsipras apparently told both leaders:
"Democracy is of the highest order in Greece and the referendum will take place regardless of the Euro group decision."
5.54pm BST
Some instant reaction to this afternoon's drama:
Tsipras set off a chain of event/uncertainties w/ his ref move that his govt cannot control. Hard to see how it can end well for #Greece
Welcome to #Draghi's nightmare: #Greece plunging euro into huge political/legal mess. This is one for jurists now? Not Europe's finest hours
If you've got 18 euro fin mins signing a PFO to Greece, you are not going to get 2/3 of @ecb GC voting to do much to help Greece.
5.47pm BST
Greek MPs are continuing to debate whether to hold a referendum next Sunday on the offer from its creditors - even though that offer is on track to expire on Tuesday night.
We now have surreal situation of Greek MPs debating a referendum on proposal from lenders that won't exist by Sunday's vote #Greece #euro
5.41pm BST
A Greek government insider has told local media that Alexis Tsipras has spoken by phone to Angela Merkel and Francois Hollande.
Apparently he told them that the Greek people will survive, whatever the Eurogroup decides:
Greek gov source: Tsipras spoke w Merkel, Hollande, said whatever Eurogroup decision is Greek people will have oxygen nxt wk, will survive!
5.38pm BST
The European Central Bank has just tweeted that it will 'hold a meeting in due course' to discuss Greece.
The Governing Council of the ECB will hold a meeting in due course to discuss the situation. The ECB is closely monitoring developments.
5.31pm BST
Since the 20 February 2015 agreement of the Eurogroup on the extension of the current financial assistance arrangement, intensive negotiations have taken place between the institutions and the Greek authorities to achieve a successful conclusion of the review. Given the prolonged deadlock in negotiations and the urgency of the situation, institutions have put forward a comprehensive proposal on policy conditionality, making use of the given flexibility within the current arrangement.
seems greece just lost a3.3 bn in SMP profits, disappears with bailout expiry on tuesday - eurogroup statement (minus greece)
Pretty much everything you need to know about #Greece today in one footnote. #eurogroup pic.twitter.com/04SUMe0ZyY
5.23pm BST
Greece's finance minister then headed to the exit door of the commission.
As he left, one reporter asked "Is this a sad day for you?"
It's a sad day for Europe, but we will overcome it.
Extraordinary #Eurogroup Doorstep #Greece @yanisvaroufakis "This is a sad day for Europe" http://t.co/ekjKDNoDBr pic.twitter.com/iQwQ0ZnJYX
5.20pm BST
And with that, Yanis Varoufakis's Eurogroup press conference ends. Will there ever be another one?
5.15pm BST
Finally, Varoufakis confirms that he spoke with the head of the European Central Bank, Mario Draghi, but gives no more details.
5.14pm BST
You have to hand it to @yanisvaroufakis. Still has the calm aura of a university lecturer even as Greece is on brink of bankruptcy/euro exit
5.13pm BST
Varoufakis says that the eurogroup made a 'comprehensive' proposals two days ago, and that's what we will put to the Greek people.
And we are leaving the door open for that proposal to be improved -- no ambiguity there.
5.09pm BST
More Varoufakis: Greece was "not invited" to second part of Eurogroup meetring tonight #Greece
5.08pm BST
Greece's finance minister denies that the July 5 referendum would eb about eurozone membership:
5.04pm BST
Varoufakis: We don't have mandate to reject the deal. We still have day-night-day for better agreement # Greece pic.twitter.com/T65o4CNlb9
5.03pm BST
Varoufakis claims that a deal can still be reached by Tuesday -- adding that the Greek government could even support it if creditors offered better terms.
5.01pm BST
The Greek finance minister says he would abide by the will of the people in next Sunday's vote:
Varoufakis: ,,If the Greek people say yes, we will sign the agreement."
5.00pm BST
Yanis Varoufakis is now giving a press conference in Brussels. He is telling reporters that Greece couldn't accept the recessionary consequences of the proposals from its lenders.
Nor did we have the mandate to reject them - only the Greek people could decide.
The refusal of the eurogroup today to endorse our request for an extension of this agreement for a few days, a couple of weeks, to allow the Greek people to vote on their proposals - even when there is a very high probability that Greeks will go against our recommendation and vote yes - will certainly damage the credibility of the eurogroup as a democratic union of partner member state.
I'm very much afraid that damage will be permanent.
4.49pm BST
A final question about the consequences if the Greek people were to vote Yes vote in the referendum (ie, to accept the creditors offer)
Dijsselbloem: Much to our regret, the Greek authorities have rejected what was on the table even though it wasn't finished.
4.45pm BST
Will Greece be in the room when you reconvene in a few minutes?
And did you discuss the implications of Greece defaulting on its 6.7bn euro payment to the ECB on July 20?
Steps that eurozone needs to take to protect itself, talks without Greece, @J_Dijsselbloem
4.43pm BST
The Greek government must meet its obligations to its creditors, says Dijsselbloem. That responsibility doesn't go away.
4.40pm BST
Can emergency liquidity still be provided to the Greek banks once the programme has expired?
Only the ECB governing council can answer that question, says Dijsselbloem.
4.39pm BST
If the programme expires on 30 June, what are the Greek people going to vote on?
You should ask the Greek government, says Dijsselbloem. I cannot answer it.
4.38pm BST
Is there anything the Greek people can do to stay in the eurozone?
Right now, a referendum on this problem, with a 'negative advice' is in the Athens parliament, Dijsselbloem replies.
4.36pm BST
There are no easy programmes - if the Greek government can't take that message to their people they have a credibility problem, Dijsselbloem concludes.
4.35pm BST
It is not clear how the Greek government will survive without funding, Dijsselbloem adds.
4.34pm BST
Historic moment here in Brussels. The 19 member eurogroup has now effectively become 18 members, w/o Greece pic.twitter.com/XpZBMXIvXT
4.33pm BST
Onto questions:
What would a yes vote mean?
4.31pm BST
Dijsselbloem says that talks were still continuing between Greece and the creditors last night, when the Greek delegation suddenly had to leave the room.
The other 18 members of the eurogroup regret the fact that Greece has rejected these last proposals from the institutions, he continues.
4.28pm BST
And we're off.
Dijsselbloem says that a statement is being issued shortly, from 18 ministers. Not supported by Greece.
4.26pm BST
Jeroen Dijsselbloem, president of the Eurogroup, has been spotted heading to the press room, and he doesn't look very happy:
D-boom on his way
Face like thunder
4.20pm BST
The press room is starting to fill up.... reminder, there's a live stream here.
4.16pm BST
Serious levels of confusion in Brussels right now -- sounds like all 19 finance ministers are back in the room, but the Greek side might yet depart early.
I've been told that the #Eurogroup has resumed WITH @yanisvaroufakis, but he may leave it later on. No press conf yet #Greece #Greferendum
4.11pm BST
Reuters reporting that Eurogroup ministers are planning to meet without Greece shortly.
4.07pm BST
There's confusion in Brussels as to whether we're going to get a press conference now, or now.
Dijsselblscreens presser was announced on screens, now cancelled and press room empties. Madness
4.04pm BST
Brussels reporters have heard that Greece's delegation is leaving today's Eurogroup meeting, following the rejection of its request for an extension:
I'm being told #Eurogroup break will be a short one with 18 reconvening without #Greece delegation after.
Confirmed info. #Eurogroup will continue without @yanisvaroufakis
3.58pm BST
AFP says Greece's request for an extension has been turned down:
Eurozone ministers have rejected Greece bailout extension, sources tell @AFP
3.53pm BST
Stefan Leifert of ZDF, the German TV station, reports that Yanis Varoufakis is speaking to the European Central Bank team during this pause in negotiations, while Germany's Wolfgang Schiuble is with the IMF's Christine Lagarde.
Eurogruppe unterbrochen. Varoufakis redet mit EZB. Schiuble mit Lagarde.
3.49pm BST
Wait wait wait!! #Eurogroup is taking a break, press conferences -Dijsselbloem, Varoufakis- to start soon, say diplomats sources #Greece
EbS, the Brussels TV channel, has just started transmitting from the press conference room. It's virtually empty right now, but that might mean something is about to happen.
3.42pm BST
The latest word from Brussels is that Greece will not be granted the one-month extension which it is seeking:
greek govt wants no vote. but wants 1-month unconditional bailout extension in case it loses. no wonder they say bizarre via @Elbarbie
german govt sources say clear eurogroup consensus on no bailout extension via @StefanLeifert
Eurogroup is presently discussing the greek referendum. "But we will soon start discussing Plan B", we hear from inside the Eurogroup.
3.24pm BST
Great pic by @Brussels_PJ @yanisvaroufakis arrives at eurogroup pic.twitter.com/ysEr1mEq3l
3.17pm BST
A reminder that you can watch the Greek debate here.
If you tune in now, you can see Andreas Loverdos of the left-wing Pasok party heavily criticising the decision to hold a referendum:
loverdos accuses tsipras is trying to hide behind the citizens.
loverdos: to keep his party together, the PM is dividing the country. we say yes to europe, yes to euro, no to this govt.
3.09pm BST
AFP reporter Roland Jackson has tweeted a picture of one Athens cash machine that ran dry, although he quickly found another that was working:
No money left at this Greek ATM in #athens #greece ... But the next one along worked fine... #greferendum pic.twitter.com/6clj2bPMFV
4 of the 5 ATMs I tried would give no money. There's been a bankrun; Monday will be fun for banks, if they open. #Greece #referendum
No good sign: a queue even at the ATM inside the Athens parliament. #Greece pic.twitter.com/ObZUVDiRxZ
3.00pm BST
Saturday seemed business as usual in central Athens, my colleague Jon Henley writes.
Shoppers are out in force, and a steady stream of people taking cash out of many ATMs but - except for National Bank branches, where pensions deposited last night were being withdrawn today - nothing you could reasonably call a long queue.
"But if I was, I wouldn't want my photograph taken. It's normal."
"It's enough now. So they will vote No. But I think if (prime minister Alexis) Tsipras goes back to the table in Brussels with a referendum result, it will show them he is not alone. He will be stronger."
"The banks may close. The institutions may withdraw their proposal, in which case what would we technically be voting on? It's a confused picture right now."
"Long. I've not seen them like that for quite a while. And there were lines at a couple of petrol stations. I think people are concerned, whatever they say."
This courtesy of @peristeraRa. pic.twitter.com/t9sOUoepkx
2.52pm BST
Time for a recap:
I am very negatively surprised by today's decision by the Greek government
They have apparently rejected the final proposals from the institutions.
voridis: it is clear what the greek people will say: yes to europe and no to the government.
voridis ends with a rhetorical flourish about the patriotic vote being yes to europe
lykoudis: government is asking the people to pull the trigger on their suicide
2.24pm BST
A couple more photos from inside the Eurogroup meeting on Greece:
2.19pm BST
The FT's Peter Spiegel has got hold of the latest offer made by Greece's creditors, and explains how there's really no new money on offer:
On Friday, there was a bit of buzz that creditors had tabled a new a15.3bn offer to Greece to extend the current bailout through the end of November. But in reality, there was nothing new to it at all.
It is essentially all the money left in the bailout, which was presented to Athens in a more fully articulated two-page memo.
Remember that "new" a15.3bn offer to #Greece from Friday? Here's why it wasn't new. Leaked memo posted, too: http://t.co/N3zKGuv8DD
2.11pm BST
Here are a a few photos from inside today's Eurogroup meeting, before it began:
2.03pm BST
While I was watching the Eurogroup in Brussels, Greece's prime minister was getting a standing ovation from his MPs as he arrived for today's referendum debate:
2.00pm BST
Newsflash: Yanis Varoufakis has told Reuters that he will ask fellow finance ministers for a bailout extension of "a few weeks" to accommodate the referendum.
Here what they just snapped:
1.58pm BST
Analysts at Barclays have warned that the referendum plunges Greece into fresh turmoil, whether the result is Yes or No.
Here's a flavour of a note they sent to clients this morning:
Government officials are currently emphasizing that this is simply a vote on the negotiations and not on the Greek position within the EMU [eurozone] and EU.
In reality, the two questions are related. We believe that the odds of a Greek exit increase substantially if Greece votes no. And if capital controls have not been imposed by then, they would almost certainly be after 5 July.
Every indication is that the existing Greek government is opposed to the creditors' current terms.
Consequently, it is very possible that in the event of a yes vote, Greece would face a political crisis, with a new government having to be formed in order to finalize the negotiations and implement the agreed-upon reforms.
1.46pm BST
Yanis Varoufakis's press officer has hit back at Peter Kazimir's claim that the Greek finance minister lectures the rest of the eurogroup:
"Lecturing" is a common excuse for shrugging off well-supported arguments that participants are unable to refute. @RaoulRuparel @OpenEurope
1.36pm BST
Eurozone finance ministers have begun debating the Greek situation.
The #Eurogroup begins.
1.31pm BST
Slovakia's finance minister, Peter KaA3/4imir, looks like a man who'd rather be anywhere else than the Eurogroup (his fifth in under two weeks).
The Greek government was elected to make decisions, so they should make them, says KaA3/4imir.
1.28pm BST
Ireland's Michael Noonan says he is "disappointed" that Greece appears to have unilaterally ended negotiations.
He had hoped that finance ministers would have closed the gaps between the two competing proposals at today's meeting.
1.25pm BST
Germany's finance minister, Wolfgang Schiuble, arrives, and tells a scrum of reporters that there appears to be no basis for further talks with Greece :
The Greeks appeared to have ended negotiations said German fin min #Schauble . #Greferendum #Eurogroup #Greece pic.twitter.com/vRkZ4yGdAp
1.22pm BST
There have been some rather grim faces among the finance ministers arriving at today's Eurogroup meeting:
Stubb (Finland) and Guindos (Spain) both used same expression: 'Plan B' is fast turning into 'Plan A'. Not looking good at all. #Greece
1.19pm BST
Finland's Alex Stubb has arrived at the Eurogroup, and told reporters that the referendum means we are "closing the door" on future negotiations.
Stubb says:
I think there is a clear majority-cum-consensus inside the eurogroup that an extension of the programme is out of the question.
I think that as an avid pro-European, yesterdays announcement of a referendum was an unpleasant surprise, and I feel quite sad about the situation, especially from the perspective of the Greek people
I would argue that Plan B is becoming Plan A.
1.14pm BST
Spain's finance minister, Luis de Guindos, says that the decision to call a referendum has made life "more difficult for everyone", making a successful end to this saga less likely:
Spanish fin min De Guindos said that it's the time that we are closer to a plan B than a plan A. #Eurogroup #Greece #Greferendum
1.12pm BST
European commissioner Pierre Moscovici has arrived - and he insists that the game isn't up:
The Commission has always worked on the position that Greece's place is in the eurozone, says Moscovic:
When I look at where we are, I see that there are differences, but they are quite limited, and they are well identified.
Where there is a will there is a way, and the Greek government should prove its own will.
#Greferendum we need a chat with @yanisvaroufakis. eurogroup decisions depend on what he says - @pierremoscovici
1.06pm BST
Christine Lagarde arrives, looking extremely serious.
She starts by expressing the IMF's condolences and support to the families of the victims who have been killed in the terrorist attacks of recent days (the attacks in Tunisia, Kuwait and France).
Together with the other institutions, we've always shown flexibility in order to adjust to the new economic and political situation in Greece.
The porpose of what we're doing is to restore the stability of the economy in Greece, and restore its financial independence, as in Portugal and Ireland.
#Greferendum lagarde's stress on 'continuing to work' contrasts with dijsselbloem's 'doors closed'
Upon arrival at #eurogroup, @Lagarde once again raises need for "debt operation" on the part of Europeans. She means debt relief #Greece
#IMF #Lagarde doesn't say a word about possible extension of #Greece program #Greferendum #Eurogroup pic.twitter.com/BfBfcRUs3P
12.56pm BST
#Greferendum eurogroup finmins sound genuinely surprised. @atsipras has pulled a fast one
12.54pm BST
Malta's finance minister, Edward Scicluna, tells reporters that the referendum has come as a nasty shock to the eurogroup:
Democratic government have the right to call a referendum, he points out, but:
It's the timing that is very unfortunate, and that is an understatement.
12.50pm BST
Goodnight, thanks for playing: Eurogroup chief @J_Dijsselbloem says 'sad' Greek referendum decision 'closes door to further talks'
12.49pm BST
Jeroen Dijsselbloem, head of the eurogroup, has just arrived in Brussels.
He tells reporters that:
I am very negatively surprised by today's decision by the Greek government
They have apparently rejected the final proposals from the Institutions.
That is a sad decision for Greece, for it has closed the door on future talks.
12.45pm BST
Greece's finance minister, Yanis Varoufakis, has arrived at the meeting. He smiles at the cameras, but doesn't speak to the assembled press.
Big grin but no comment from @yanisvaroufakis as he enters #Eurogroup
12.43pm BST
Belgium's finance minister, Johan Van Overtveldt, has arrived at the eurogroup meeting in Brussels, and warned that time is running out.
We can no longer prolong whever action we need to take. We will have to decide on issues today.
12.34pm BST
Finance ministers from centre-right countries are meeting first to discuss Greece, before arriving at the full eurogroup meeting.
That's via Finland's Alex Stubb:
In Brussels. Beginning with @epp Finance Ministers. Then #Eurogroup. #Greferendum
12.33pm BST
Latest word from Brussels is that eurozone ministers are unlikely to offer Greece an extension at today's eurogroup:
12.22pm BST
Open Europe's analyst Raoul Ruparel fears that there are few positive outcomes for Greece now.
As he points out, there is no guarantee that the creditors' offer of a bailout extension will still be on offer when the referendum takes place (it may not even survive today's eurogroup meeting)
No matter what, capital controls and bank holidays will likely be needed in the short term (and possibly longer) in Greece. Even if the referendum gives a positive outcome, this may still provoke uncertainty.
It is not clear whether the deal to be voted on is actually still on the table. Furthermore, Tsipras has set himself up to reject the proposal, so it might be hard to avoid new elections if the people back the creditors. If there is a No vote, this is likely to be seen as a vote for Grexit, since any offer on the table from creditors will be a take it or leave it one.
12.12pm BST
The government, though, is insisting that a referendum can be held on Greece's bailout programme, given its importance:
SYRIZA spokesman Fylis says referendum question being posed as "crucial national issue," which is permitted by constitution #Greece #euro
fylis: none of venizelos's arguments stand. ultimatum is a text of broader significance that determines future of our kids and our society
12.12pm BST
It's going to be a long debate....
syriza's fylis rebutted venizelos's arguments about referendum's constitutionality: his speech confused viewership w/substance
12.07pm BST
Venizelos is insisting that the terms of Greece's bailout simply isn't an issue of national security, so it can't be the subject of a referendum....
MP Venizelos challenges the constitutionality of the referendum on the basis that fiscal issues no threat to national security of country
12.05pm BST
Amid occasional barracking and constant low-level grumbling, Evangelos Venizelos is insisting that the Greek constitution prohibits referendum on fiscal issues.
Votes on national issues are allowed, but they mean foreign policy not financial matters, he tells MPs.
12.04pm BST
Back in the Athens parliament, things are getting heated. Former deputy PM Evangelos Venizelos is on his feet, questioning whether a referendum is constitutional.
He's reminding MPs that Alexis Tsipras was highly critical of ex PM George Papandreou's (failed) attempt to hold a referendum in 2011, calling it a "trick" to keep himself in power.
@graemewearden A transcript of @atsipras's scathing criticism of the 2011 proposed referendum, with compliments. pic.twitter.com/TIqQ10ZAdp
12.00pm BST
Over in Brussels, eurozone finance ministers are starting to arrive for today's extraordinary meeting on Greece.
French Finance Minister Sapin has arrived at Eurogroup meeting. No doorstep declaration. #Greece
11.58am BST
Our Southern Europe editor, John Hooper, reports a queue at a cash machine in Syntagma Square (the site of the parliament)
Queuing round the corner for ATM in Syntagma Square pic.twitter.com/4vyVEMVAXr
11.54am BST
I can't speak for other areas but in Kallithea it's business as usual - except for the sound of Parliament TV out of every window. #Greece
11.53am BST
The head of the Greek Bank Association, Louka Katseli, has assured the Athens News Agency that cash machines are being "replenished smoothly."
Katseli, who also chairs the National Bank of Greece added that any "isolated problems" due to an increase in outflows is being dealt with "as soon as possible" by the Central Bank of Greece.
11.48am BST
Syriza MPs have been applauding warmly at several points, including as Voutsis concludes his speech.
voutsis concludes with fact that the referendum will be groundshaking and lead to an "honest agreement" afterwards.
11.45am BST
voutsis: it's not game over for our country or its people or its government or this parliament.
11.43am BST
Nicos Voutsis is telling MPs that the referendum can help end austerity in Greece:
Twitter user Diane Shugart is tweeting the key points:
voutsis says the multiple blackmail directed at greece cannot go unanswered
voutsis: the millions of our compatriots who have been pushed to or below the poverty line will participate on equal basis
voutsis: we all have responsibility for the fact that their voices not being heard but we are taking the initiative today to restore the >>
voutsis: we're not willing to accept that there is only a one-way street, the one-way street of austerity
11.38am BST
Greece's interior minister, Nikos Voutsis, has opened the debate. He criticises the country's lenders, and calls on all parties to vote in favour of holding a referendum:
Minister Voutsis slamming the "undemocratic logic" in the negotiations with the institutions. #Greferendum #dimopsifisma
Minister Voutsis: "As obvious by yday's speech by the PM, the GR govt is not neutral; we ask to vote against the proposal." #Greferendum
11.30am BST
The referendum debate is being streamed live here.
11.27am BST
A senior member of Angela Merkel's CDU party says there is no chance of the Bundestag approving a short-term extension to the Greek bailout:
Gunther Krichbaum added that the Greek PM has "pulled the plug":
11.25am BST
The debate in the Greek parliament has begun, around 90 minutes later than billed:
parliament approves process, with debate ending with midnight vote.
11.22am BST
It is not only on the streets that tensions are on the rise, reports our correspondent Helena Smith.
In parliament, where party leaders have rushed to convene emergency meetings, the rhetoric is also becoming ever more shrill.
Addressing her MPs, the newly elected leader of the left-wing Pasok party, Fofi Gennimatas, said it was important the referendum did not take place .
"They are gambling with the country. The real question is 'yes or no' to Europe."
11.10am BST
Delaying the referendum vote means Greek MPs should know the result of today's meeting of eurozone finance ministers on Greece (unless that also runs on until midnight!)
11.08am BST
We're now hearing that the vote on whether to hold a referendum has been pushed back to midnight Athens time, from 7pm.
#Greece parliament vote on referendum to be held at midnight. It will be a very long day.
11.05am BST
Freelance journalist Nick Barnets reports that it's business as usual in his area of central Athens:
So far in central #Athens between Exarchia and Syntagma, I have seen almost nobody using an ATM. Typical Saturday afternoon here. #Greece
11.01am BST
Reuters has been told that 'security issues' were the reason one Greek bank didn't open as usual this morning (causing that queue flagged up earlier):
By mid-morning, there were dozens queuing outside a branch of Piraeus Bank in central Athens, although that is not unusual as many Greeks who don't use cash cards come to banks on Saturdays. The bank was still closed nearly an hour after it was meant to open at 0730 GMT.
A senior executive at Piraeus said it intended to open the branch but was considering security issues because of the queues.
"The Bank of Greece is making a huge effort to keep ATMs fed with cash,"
10.45am BST
The FT's Peter Spiegel has heard that eurozone finance ministers are very unlikely to accept Greece's request for a short bailout extension to accommodate the referendum, when they meet today.
Two senior #eurozone officials tell me it's highly unlikely #eurogroup will extend #Greece bailout beyond Tues.
Related: Creditors draw up emergency measures in case of Greek default
10.34am BST
Greek government ministers have been making their way into parliament, where the governing Syriza party is to hold a meeting of its political secretariat:
Asked if banks were at risk, the interior minister Nikos Vroutsis told reporters minutes ago:
"I am very optimistic and optimistic about banks."
"I am optimistic, optimistic that Greeks will say a resounding 'no' to their [creditors'] brazen demands."
Smiles all round among Syriza officials in parliament. They are a happy bunch today #greece #Greferendum
10.29am BST
Over in Athens, our correspondent Helena Smith says queues now forming outside banks are noticeably longer in the less affluent areas of the capital.
In the suburbs of Athens, especially in areas worst hit by the biting effects of austery, queues are much longer than they are down town.
In the plush area of Kolonaki, it is coffee shops that are drawing people, not banks, according to my colleague John Hooper who happens to be just there.
10.19am BST
My colleague Jon Henley is tweeting from the Greek capital:
Tensions that little bit higher in Athens today - furious row between press photographers and ppl queuing to take cash out #Greece
10.15am BST
Euro zone finance ministers are still planning to hold their emergency meeting on Greece today, despite the referendum, one EU official has told Reuters.
The meeting is due to start at 2pm Brussels time (1pm UK, 3pm Athens)
EU official: "Cannot see how bailout extension can possibly be accommodated by eurogroup". #Greece talks today more likely to be on "plan B"
Enormous sense of betrayal in Brussels. First that there was no pre-warning of referendum. 2nd that Tsipras has already chosen his answer
10.08am BST
More from Sky's reporting team in Athens:
We have seen an ATM run out of money and the queue move down to next bank. Radio stns broadcasting which ATMs still have cash.
9.57am BST
9.47am BST
And here's another queue outside a Greek bank in the capital, via Associated Press (who say it didn't actually open in the end)
9.42am BST
From Athens, Sky News's Rob Nisbet reports a long queue at one ATM machine:
At least 40 people queueing at this ATM in Kallithea pic.twitter.com/1KDPHBcRFd
9.34am BST
"We would consider the recent turn of events as a particularly negative market outcome".
That's the snap verdict from Deutsche Bank, who say the question of Greece's membership of the euro is now "officially opened".
9.27am BST
Greece will be given a straight choice whether to accept, or reject, the package of measures drawn up by the IMF, ECB and EU:
SORTED refQ saga: "THOSE CITIZENS REJECTING PROPOSAL OF 3 INSTITUTIONS -- NO "THOSE CITIZENS SUPPORTING PROPOSAL OF 3 INSTITUTIONS -- YES
Here is Referendum question (h/t @antheecarassava) Do citizens reject the proposal of the three institutions? NAI / OXI
9.23am BST
Ladbrokes, the betting firm, reckons that Greeks are likely to reject the proposal drawn up by its lenders:
#Greece bailout #referendum odds: 1/3 NO to deal 2/1 YES to deal http://t.co/4CWIfTXJ2p pic.twitter.com/dY7OqtsnXX
9.15am BST
The head of the junior coalition party in Greece, Panos Kammenos, has told Greeks to remain calm, as banks will remain open.
Kammenos told local TV that the decision to call a referendum shouldn't spark alarm.
"Citizens should not be scared - there is no blackmail,"
"The banks won't shut, the ATMs will (have cash). All this is exaggeration."
Ind Greeks leader Kammenos (coalition party) says if creditors back down & accept Greek proposal "everything changes-referendum called off."
9.12am BST
There are signs that worried Greeks are heading to the cash machines in greater numbers this morning.
II...III IfI III IfII IIIIIIfI^1 pic.twitter.com/7LvU8v6Aoi
2 out of 3 ATM in Athens refused my card and could only get a100 out of Eurobank one. Old Greek ladies shoving 1, 2, 3 cards into ATMs
bank run watch, poros: two people at the ATM, both weekending yachties from athens. locals haggling with fishermen over day's catch.
9.00am BST
Good morning.
Europe has woken up to a new phase of uncertainty this morning after Greek Alexis Tsipras stunned the nation, and beyond, by calling a referendum on its bailout deal.
Related: Greek PM Alexis Tsipras calls referendum on bailout terms
#Greece parliament plenary session at noon, #Eurogroup at 3pm (GR), vote on #Greferendum at 7pm (GR). #politics #euro
Today's Eurogroup has a big decision to make: do they extend bailout to 5th July or not? The Greeks have requested that & it would 1/2
allow the ECB to keep funding the banks. But why agree from their point of view? Would require a difficult Bundestag vote. 2/2
Describing the vote as a "historic decision", Tsipras said he had informed the leaders of France, Germany and Mario Draghi, the head of the European Central Bank about the decision. "I asked them to extend our current bailout by a few days so this democratic process could take place," he said.
Greeks would be asked whether they wanted to accept or reject excoriating tax hikes and pension cuts that the EU, ECB and International Monetary Fund have set as a condition to release desperately needed bailout funds. Greece's current rescue programme, already extended once, expires on 30 June.
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