Greece debt crisis: Thousands of Yes supporters protest, as Tsipras seeks new bailout - live updates
Yes supporters flood Syntagma Square tonight, as eurozone finance ministers ponder Athens surprise request for a third bailout
Earlier:
7.53pm BST
After speaking at the rally, Athens mayor George Kaminis hotfooted it to Bloomberg TV, and called for Alexis Tsipras to resign so "fresh new leadership" can be put in place.
7.49pm BST
Braving the rain for 2hours, pro-euro/deal crowds take cover under umbrellas outside Parliament #greece #GReferendum pic.twitter.com/48X9z1LDc2
7.49pm BST
Greece has barely three hours to meet its a1.6bn repayment to the IMF, or fall 'into arrears'.
Greece's deputy PM, Yannis Dragasakis, has revealed that Athens sought a last-ditch delay....
#Greece Dep PM tells @ErtSocial the gov't requested from the #IMF suspension of today's payment of a1.6 bln. #economy #ec #ecb
7.45pm BST
Over in Athens SKAI news is reporting that at least 22,000 people have poured into Syntagma square to attend tonight's "yes" rally, reports our correspondent Helena Smith.
The gathering is so large that protestors are now crushed and spilling out of ALL the streets that run into the Greek capital's main square. No demonstration, quite as big, has been seen in the five years that I have covered the crisis.
"The real dilemma is yes or no to Europe," he railed.
7.33pm BST
This anecdote may show how tonight's Yes demonstrators are wealthier than those who attended last night's rally, for the No side.
#Greece, the guys at the pro #Euro rally have clearly more smartphones than the guys yesterday. Network does not work properly;) @welt
7.32pm BST
Some pro-Eu protesters have argued with riot police who were deployed to prevent them reaching the parliament building in Athens:
7.16pm BST
Eurozone finance ministers are likely to speak again tomorrow:
Also, another #eurogroup call tomorrow, I'm told. Ugh.
7.13pm BST
Newsflash: Eurozone finance ministers have just finished their teleconference call.
And Finland's representative, Alex Stubb, has tweeted a strong hint that Greece's request for short bailout extension will not be granted (not a shock)
#Eurogroups ends. Letter of @tsipras_eu includes three requests. Extension of programme or haircut not possible...cont...
...request for ESM-programme is always dealt with through normal procedures.
7.06pm BST
No doubts about it - it's a big turnout of Yes voters tonight:
Got to a high point to overlook Athens pro-EU demo. Larger & noticeably wealthier crowd than at the anti-EU protest. pic.twitter.com/bzvXsvXPVf
7.05pm BST
#Greece pro #Euro rally, thousands in Athens, Syntagma square, against #Tsipras. @OlafGersemann @welt pic.twitter.com/doJlBqO8hA
6.58pm BST
Half of Fleet Street have decamped to Athens, adding a new terror to the Greek debt crisis.
(the other half are running rival Greek crisis liveblogs)
#Athens proEU rally listening to impassioned, long speech. Men in smart shirts applaud awkwardly. Less natural energy than antiEU rally yday
Thunderstorms over parliament in Athens (and lots of umbrellas) for the Yes to Europe rally tonight #Greece pic.twitter.com/1PwG8zldoo
Enterprising man doing good business flogging children's whistles as crucial protest supplies. pic.twitter.com/aUnAp4QfnX
6.54pm BST
Back in Brussels, EC president Jean-Claude Juncker fled a meeting with the press, because he has something more urgent, and Greek-related to attend to:
Juncker ends speech saying must go 'immediately because important events that you are not prepared for are happening in Athens'...
6.44pm BST
Our own Jon Henley has also been speaking to Yes supporters today.
"I'm proud of that, actually. But I see why people feel so strongly. Greece is suffering and Greece needs change, and there are a lot of people who think radical change is the only answer. You have to respect where they're coming from."
This just so dangerous. This country needs stability, and that's the reverse of what it's getting. And going back to the drachma will be far, far harder than anyone thinks. We'll be like a developing country."
"The knock-on effects would be simply terrible. I can understand an unemployed graduate might not see things that way - but I believe Greece would be entering a new era of hardship like we haven't seen here for nearly a century."
6.40pm BST
Another Yes voter tells Phoebe Greenwood that she is very fearful of the impact of a No results on Sunday.
It's only in the European Union that legal democratic processes are guaranteed.
6.34pm BST
In Athens, one campaigner tells my colleague Phoebe Greenwood that it is vital that the Yes campaign win on Sunday.
We have to stay in Europe, it is very important to make new economic reforms, and urgent to take some austerity measures, he says.
6.32pm BST
Despite the rain, thousands of demonstrators have turned up in Syntagma Square tonight to show their support for the Yes campaign, ahead of Sunday's referendum.
6.21pm BST
Oh dear. Indiegogo, the crowdfunding web site, now appears to have crashed under the weight of people trying to donate to Greece tonight.
Sorry guys.
https://t.co/46RTSsUMfD @graemewearden Whole Indiegogo site crashed by ppl trying 2 donate #Greece
6.16pm BST
Wolfango Piccoli of Teneo Intelligence reckons the application for a third bailout today was just "domestic consumption" ahead of Sunday's vote.
The most realistic scenario remains a Greek application for a third program at some point after the referendum on Sunday - supposing that the "YES" vote prevails.
If the counter offer were to be accepted by the creditors (unlikely), this would be positive given it entails debt relief; if the offer is rejected (highly likely), he can re-unify his cabinet, blaming Greece's European partners and boosting the "NO" vote ahead of Sunday.
the increasingly erratic activism in Athens over the last hours also reveals that some in the Greek government are deeply worried now that it becomes clear that the Greek bet on the lenders' fear of contagion has not played out
6.08pm BST
A senior Syriza party official has just told Helena Smith that: "EVERYTHING NOW IS POSSIBLE."
6.05pm BST
A crowd-sourcing fund set up to help Greece has pulling in donations at an impressive rate.
Started yesterday by London shoe seller Thom Feeney, it has already raised almost a230,000 from almost 15,000 people.
I was fed up of the Greek crisis going round in circles, while politicians are dithering, this is affecting real people. While all the posturing is going on, then it's easy for the politicians to forget that. I just thought, sod it, I'll have a crack.
5.54pm BST
There are reports from Athens that some firms have been pushing their staff to take part in tonight's Yes rally.
Not sure how substantial they are, so I've alerted our people on the ground - in the meantime, regular reader equusmulusoctopus has kindly provided the details:
The labour inspection of the Greek ministry of work and social insurance says that it has been receiving dozens of complaints since early this morning about employers trying to force their employees to participate in the "yes" demonstration this evening. The attempt appears to be well organised and the employees are told to gather at certain places where they will be given placards and whistles and be marched to Syntagma. Those who don't go are threatened by immediate dismissal.
The attempts to force employees to the demonstration are made at all sorts of companies, mostly big and medium-sized. The ministry mentions shipping companies, companies trading in foodstuffs, German companies trading electric goods and insurance companies explicitly, but adds that the complaints come "from everywhere imaginable".
5.51pm BST
Yes supporters are gathering in the centre of Athens tonight for their rally, along with plenty of journalists who report that all is calm so far.
Pro-yes folks gathering at Syntagma square. All calm. Yesterday's pro-no rally was peaceful. Hoping same for today. #greece #greferendum
No sign of any trouble in Syntagma. Last week the anarchist lot were in the square as demo started, not tonight and police blocking roads
5.46pm BST
There's no way of stopping Sunday's referendum, it seems.
Not only has the Tsipras government now set up a web page dedicated to the plebiscite, the parliament's fiery president Zoe Konstantopoulou has announced that constitutionally there is no way to revoke the popular vote.
"From the moment that it was decided, there is no constitutional procedure to cancel the referendum...."
5.38pm BST
The German chancellor has deflated Yanis's tires.
According to Reuters, Angela Merkel has now confirmed that Berlin isn't prepared to negotiate a third bailout until Sunday's referendum has been held
5.31pm BST
The Athens stock market remains closed today, for the second day running.
We are receiving calls from liquid managers trying to figure out a value for their Greek investments.
Most simply do not have a pricing policy that accommodates this situation, as many fund strategies specifically exclude investment in illiquid securities. Absent observable market inputs for valuation, these newly illiquid investments will move from objective market valuations to a more subjective analysis.
5.24pm BST
Greece appears to be requesting a bailout of almost a30bn
Today's letter explains that it is simply seeking more funding to cover debt that expires between 2015 and 2017. And that, according to this letter uploaded by the FT, is over a29bn.
Unfortunately for Tsipras, Article 16 also happens to mention that a new programme must include a new "MoU" - or memorandum of understanding, a phrase that is politically poisonous in Greece.
5.04pm BST
In the financial markets, there's little hope of any major breakthroughs tonight, says Chris Weston of IG:
Greece is living in its final hours before passing into the unknown territory that lies beyond the bailouts of the past five years. It is a journey that even Jason and his Argonauts might balk at venturing on.
4.59pm BST
Europe's stock markets ended the day deep in the red again, with the Greek crisis causing some alarms again (although not a full-blown crash).
4.47pm BST
Other members of Greece's negotiating team have joined Yanis Varoufakis and Alexis Tsipras at the PM's mansion to discuss the situation (in a blow for photographers, they didn't all arrive on motorbikes)
4.44pm BST
The latest rumblings out of Brussels don't sound too good for Greece....
Despite my optimism when I 1st saw new @atsipras proposal, I'm getting very negative reaction from those who make the decisions. #Greece
#greece for good or ill, @atsipras consistently catches everyone off guard. not over yet #breathtaking
4.38pm BST
The campaign for a Yes vote in Sunday's referendum will begin holding demonstrations in central Athens, in around an hour's time.
#greececrisis Athens tonight: pro-"yes" (for #Greferendum) demo at #syntagma sq. Hashtag: #YesEurope #MenoumeEvropi
35.000 persons have already confirmed in Facebook their presence in today's pro-EU rally in Athens. #MenoumeEvropi pic.twitter.com/EU6MU9kF26
4.29pm BST
Germany isn't alone in reacting warily to Greece's request for a third bailout; Politico's Ryan Heath hears that others countries are unimpressed.
#EU govts not reacting well to #Greece loan request. "Lots of countries at this stage against new money and debt relief," Nat spoke source
4.23pm BST
Wall Street has gone back to - largely - ignoring the Greek crisis after yesterday's dip.
In morning trading the Dow, S&P 500 and the Nasdaq are all up marginally. There has been speculation that the Federal Reserve may delay raising interest rates if the eurozone crisis escalates, which could account for today's better mood.
4.21pm BST
#greece bugger a 3rd bailout, berlin now relishing the silly referendum - no means grexit, yes means tsipras gone #winwin
4.17pm BST
As news of the third bailout request sent ripples through the eurozone, Greece's finance minister left the finance ministry.
His destination -- the prime minister's residence, Maximos Mansion, for a meeting.
4.11pm BST
Angela Merkel has told lawmakers in Germany that her government can't consider any new proposal from Greece until Sunday's referendum has taken place.
BREAKING: Merkel says Germany refuses to consider a third bailout package proposed by Athens before Sunday's referendum in Greece.
#greece berlin now seems to *want* the referendum #hardball
4.08pm BST
Eurozone finance ministers cannot simply shred this request from Athens for a new bailout; they have to give it serious consideration.
As our Europe editor, Ian Traynor, points out, Brussels has been insisting for days that the door is open. They can't just slam it in Alexis Tsipras's face now, however exasperated they may be.
#greece europeans have been saying endlessly since saturday the door's still open. now we'll see #toughone
#greece #tsipras...and just when they thought they might be getting rid of him...
4.03pm BST
The Greek government's statement leads little for conjecture, says Helena Smith. It is still not backing down from holding a referendum on Sunday.
"The Greek government today suggested a two-year agreement from the European Stability Mechanism for the full coverage of financial needs and at the same time restructuring of debt.
'The Greek government until the end will seek a viable solution within the euro. This will be the message of NO to a bad agreement in Sunday's referendum."
3.47pm BST
Here's the letter which Greece has sent to the Eurogroup, asking for a new two-year loan.
Tsipras' letter to the #Eurogroup requesting 3rd bailout, debt restructuring. #Greece pic.twitter.com/ienUCymoVo
3.35pm BST
Newsflash: eurozone finance ministers are going to speak in three and a half hours to discuss Greece's request for a third bailout.
They are due to speak at 6pm BST, or 8pm Athens time.
Extraordinary Eurogroup teleconference tonight 19:00 Brussels time to discuss official request of Greek government received this afternoon
3.32pm BST
Vince Scarpetta, of the Open Europe thinktank, agrees that Greece would probably face a similar list of 'reforms' if it took a third bailout.
New ESM programme would mean new Memorandum. Can't see conditions attached changing significantly from what they are now. #Greece
3.27pm BST
Greece's proposal for a new two-year bailout has just arrived in Brussels, according to Marco Zatterin of Italian newspaper La Stampa.
The new Greek proposal has landend in Brussels (Eu sources) La nuova proposta di Tsipras i arrivata a Bruxelles (fonti Ue) @la_stampa
3.22pm BST
If Greece does get a third bailout, it would inevitably have to agree new economic reforms (or conditionality), as Credit Agricole's Frederik Ducrozet points out:
Greece asks for a 2-year bailout that includes financing and debt restructuring. With conditionality, or a free lunch?
3.16pm BST
Many experts have been predicting for months that Greece would need a third bailout, if it couldn't return to the financial markets this summer (as it clearly cannot).
But the constant wrangling over the second bailout has meant that no discussion could take place about a third deal.
Clever: #Greece is proposing a new #ESM programme, which is basically a 3rd bailout. But current bailout would still expire.
This is probably what @atsipras should have done back in Jan: let current bailout expire & neg a new 3rd programme. Less bad blood back then
3.12pm BST
Our Athens correspondent, Helena Smith, is hearing the deputy prime minister Yannis Dragasakis will announce news of the proposed third bailout tonight.
Insiders are saying that the Greek prime minister will fly to Brussels imminently.
How Tsipras will make the about turn - and save face - will be interesting. The issue of debt relief is key....
3.05pm BST
The eurozone crisis simply cannot break its addiction for last-minute developments and late-night meetings.
But this request for a third bailout, as second programme enters its final hours, is a classic....
Here we go again at eight hours and eight minutes to midnight. Greece proposes two-year rescue deal with @ESM_Press
3.01pm BST
Announcing the remarkable news that it now wants a third bailout, the Greek government says:
"From the first moment, we made clear that the decision to hold a referendum is not the end but the continuation of negotiations for better terms for the Greek people...
The Greek government will until the end seek a viable agreement within the euro."
2.53pm BST
The Greek government has proposed a new Two-Year bailout programme, according to news breaking in Athens.
This two-year programme would be supplied under the European Stability Mechanism (Europe's bailout fund)
*GREECE ASKS FOR 2-YR BAILOUT PROGRAM FROM ESM: PM'S OFFICE
2.34pm BST
Over in the Greek capital, a press briefing with foreign journalists has just been cancelled - so cabinet ministers can gather for an urgent meeting.
The briefing in Athens for foreign journalists was cancelled "due to urgent meetings with ministers"
2.12pm BST
As tonight's deadline approaches for Greece to pay a1.6bn to the IMF and agree a deal before its bailout extension runs out, there are hopes that the country and its creditors can still come to some sort of deal.
Finance minister Yanis Varoufakis has said plainly that Greece will not pay the IMF - an event which ratings agencies would not consider as a default - but is still hopeful of an agreement.
EC president Jean-Claude Juncker had offered to convene an emergency meeting of euro zone finance ministers on Tuesday to approve an aid payment to prevent Athens defaulting, if Tsipras sent a written acceptance of the terms. He also dangled the prospect of a negotiation on debt rescheduling later this year if Athens said "yes".
1.39pm BST
Here's Bloomberg on Schiuble's comments:
German Finance Minister Wolfgang Schaeuble told lawmakers in Berlin that Greece would stay in the euro for the time being if Greek voters reject austerity in a referendum scheduled this week, according to three people present.
Schaeuble also said the European Central Bank would do what's needed to protect the euro if Greeks voted against the bailout terms in the July 5 referendum, according to the people, all of whom participated in the closed-door meeting on Tuesday. They asked not to be identified, citing the private nature of the discussion.
1.32pm BST
German finance minister Wolfgang Schiuble seems to have gone against the trend, by saying Greece would not have to leave the euro if it voted no in Sunday's referendum, according to Reuters.
1.21pm BST
Meanwhile one thing working against the No campaign in the Greek referendum is the broad media support for the country accepting the terms on offer from its creditors. John Hooper reports from Athens:
Television is overwhelmingly anti-Syriza. All the big, privately-owned channels - Alpha, ANT1, Mega, Star and Skai - lean towards accepting the lenders' offer to secure Greece's position in the euro zone.
The exception is state-owned ERT -- unsurprisingly since it was put back on the air by the current government after being shut down as an economy measure in 2013.
1.18pm BST
Bookies William Hill have cut their odds on a No vote in the Greek referendum from 2/1 to 5/4, and lengthened the odds for a Yes vote from 4/11 to 4/7. 'All the serious money so far has been for a 'No' vote' said Hill's spokesman Graham Sharpe.
Hills now offer 7/4 that Greece will leave the Eurozone during 2015, 2/5 that the country will stay in.
1.01pm BST
The effect of the Greek crisis on everyday lives is being shown again, as Fitch Ratings reports that mortgage arrears have risen during the protracted negotiations between the government and its creditors. Fitch says:
A deteriorating economy and almost total absence of bank credit may have combined with retail borrowers withholding loan repayments during the extended period of uncertainty.
Some mortgage borrowers may already be strategically entering early-stage arrears as the crisis damages the banking sector. They may also be choosing to make payments on other debts rather than mortgages as they are aware that banks are unlikely to enforce against their property collateral.
12.52pm BST
It is still unclear whether there is anything new on the table.
Greece's chief negotiator Euclid Tsakalotos seemed to be suggesting earlier that there was.
#Merkel: I see no concrete signs of a last minute deal with #Greece https://t.co/ofL0wSXIjE
12.33pm BST
Meanwhile, as a change of pace, here is a piece of video of yesterday's rally in Athens:
12.27pm BST
The Greek prime minister's office has also announced that Tsipras has had telephone contact today with EU president Jean-Claude Juncker, the head of the European Central Bank, Mario Draghi and European parliament president Martin Schultz, reports Helena.
12.23pm BST
Helena Smith has more on a possible deal, with talk that Alexis Tsipras may be set to travel to Brussels soon to discuss it:
Reports are mounting that the Greek prime minister has not only accepted a deal but will travel to Brussels, possibly as early as this evening, to discuss it with senior EU officials.
The deal, based on reforms proposed by EU commission president Jean-Claude Juncker late last night, is believed to have been rubber stamped at a meeting of senior government official held at the prime minister's office, the Megaron Maximou, this morning. The German daily, Bild, is also backing up the reports, saying Tsipras has had contact with high ranking EU officials whom he will meet imminently. "The prime minister's plane is at the ready," the paper said.
12.22pm BST
Despite that, hopes are indeed growing for a deal.
Dep For Min (chief negotiator), Euclid Tsakalotos tells BBC that new proposals from Troika submitted.He hints at deal before referendum
12.18pm BST
Meanwhile Greek finance minister Yanis Varoufakis has said the country will not make the a1.6bn IMF payment on Tuesday.
But he still hopes for a deal with creditors....
12.06pm BST
More from Greece's chief negotiator Euclid Tsakalotos:
Greece's Tsakalotos: If Greece Gets A Deal If Cannot Refuse, Then It Will Reconsider Vote - BBG $EURUSD
12.00pm BST
Meanwhile, more from the EU Commission spokesman:
'When the president speaks, we shut up,' @MargSchinas declines to interpret @JunckerEU's 'suicide' comments yesterday
11.55am BST
Uh oh:
BREAKING: German government official says it is now too late for an extension of the Greek bailout programme.
11.51am BST
Greek television is now reporting that the country's government is sending its own proposals to creditors:
Skai TV reports that Greek gov't sending its own proposal to institutions #Greece #euro
11.48am BST
And apparently EC president Juncker has no plans to visit Greece before the referendum.
11.42am BST
Confirmation that contact between the two sides is underway, but so far no real movement, according to the EU commission spokesman. Reuters reports:
Greece has not yet made any movement in response to a last-minute bid by creditors to broker a deal to end a deadlock over the Greek debt crisis, the European Commission said on Tuesday.
Greek Prime Minister Alexis Tsipras called European Commission President Jean-Claude Juncker on Monday night and Juncker, after speaking to the chair of euro zone finance ministers Jeroen Dijsselbloem, explained what a last-minute deal could look like, Commission spokesman Margaritis Schinas told reporters.
.@atsipras called @JunckerEU last night.#Greek gov has 2 accept the proposal of Friday night,gov has to campaign yes confirms @MargSchinas
11.38am BST
Some clarity about what offer EC president Jean-Claude Juncker made last night to Greek prime minister Alexis Tsipras, and it seems like it was the same offer as before according to the EU commission spokesman Margaritis Schinas:
At midday presser @MargSchinas makes clear @JunckerEU proposal last nite was what was on table since Sun. So not really a new offer #Greece
11.31am BST
And another piece of housekeeping.
Eurozone inflation slowed in June from 0.3% year on year to 0.2%, in line with economists' forecasts.
11.25am BST
The European Commission seems to be showing little sign of bending:
11.22am BST
Danuta Huebner, chair of the committee on constitutional affairs at the European Parliament, has tweeted about the legality of Grexit:
A member state's exit from #EMU without a parallel withdrawal from the EU, would be legally inconceivable #Greece https://t.co/UyeHZQctVX
A Member State's expulsion from the EU or #EMU would be legally next to impossible #Greece @EU_Commission http://t.co/ApLWqrkGNw
11.16am BST
Whether or not it would be a default if Greece misses its a1.6bn payment due to the IMF by tonight, Greek banks would struggle to remain solvent for many days according to a European Central Bank supervisor. Reuters reports:
Asked how long Greek banks could hold out were the country to miss a a1.6bn payment to the International Monetary Fund on Tuesday, [the ECB's} Felix Hufeld said they could be considered solvent for up to five days.
"It's a matter of days," Hufeld, who sits on the ECB supervisory board that decides whether Greek banks are still solvent, told the Frankfurt business journalists' club late on Monday, in remarks set for release on Tuesday.
11.04am BST
Over in Athens, the govermment has hotly denied that it is drafting plans to re-instate the drachma as suggested by the pro-European Potami party MP Harry Theoharis in a tweet earlier today, reports Helena Smith.
The centrist's MP's assertion was beyond the bounds "of science fiction" prime minister Alexis Tsipras' leftist-led administration announced in a statement.
"It constitutes a monument of irresponsibility," the statement said. "Disgrace and nothing more."
10.55am BST
But of course, nothing is ever as easy as both sides agreeing something in a straightforward way, as the FT's Peter Spiegel indicates:
Sr #Greece off'l denies to me that @atsipras reconsidering 11th-hr @JunckerEU offer. But Athens may propose something else this afternoon
10.48am BST
As a reminder, here's our handy guide to the payments Greece is due to make:
10.44am BST
Meanwhile the reports that Greek prime minister Alex Tsipras is considering the latest EU proposals - and has told Brussels as much - have lifted markets off their worst levels.
Germany's Dax is now down just 0.3% while France's Cac is 0.2% lower. Spain's Ibex is now up 0.3%.
10.38am BST
Amid all the planning for the referendum and the uncertainty of Greece's current situation, finance minister Yanis Varoufakis has made time to read the views of economist Joseph Stiglitz published by the Guardian:
Joseph Stiglitz: how I would vote in the Greek referendum http://t.co/WpIGUvKjUA
10.34am BST
Any deal would reportedly be based on the offer made to Athens by EC president Jean-Claude Juncker last night:
Tsipras in touch with Juncker to discuss last night's proposal, reports Skia TV #Greece #euro
10.22am BST
There seem to be some frantic last-minute efforts to get a deal together before tonight's deadline, despite how unlikely that may have seemed earlier. Helena Smith reports:
The possibility of a solution still being found to break the deadlock was highlighted this morning when a senior government official let slip that Greece's payment of a1.6bn in outstanding loans to the IMF should still not be ruled out.
"It doesn't look like it [will be paid] at this moment," said one well-placed government source. "But at previous times, they have always found a solution at five to twelve."
GREECE TSIPRAS MULLS LAST MINUTE INITIATIVE FOR DEAL - SKAI TV - MNI
10.09am BST
Russia seems keen to distance itself from the Greek crisis. From Reuters:
Finding a solution to Greece's debt crisis is not a matter for Russia but for Athens and its creditors, Kremlin spokesman Dmitry Peskov said on Tuesday.
"This is Greece's problem," Peskov told journalists on a conference call. "(It's a matter) of Greece's relations with its creditors, it's not a matter for us."
10.01am BST
Meanwhile our correspondent Helena Smith has just spoken with the country 's chief negotiator who insists that Greece has indeed not closed the doors on talks with its creditors:
Sunday's referendum should be seen "as part" of the negotiations not something that cancels them out, Euclid Tsakalotos, the point man in talks between Athens and the international bodies keeping it afloat, told me this morning. "The referendum is part of the negotiation, it is not in lieu of it," he said. "Europe shouldn't be afraid."
The comments echoed similar sentiment voiced by prime minister Alexis Tsipras last night who also said that a strong "no" vote would bolster Greece's place at the negotiating table.
"Yes, of course they will," he said, suggesting that the two sides had come very close to a deal last week. "The idea was that we were going to take it to parliament before Germany and other parliaments also voted on it. But then we went one step further and said we should put it to the Greek people as a whole, let democracy work, which would have meant extending the programme by a week or so," he said of Greece's request to prolong its financial lifeline. "I really can't see why that couldn't happen. Extending [the programme] by a few days would not have been the end of the world."
Political commentators this morning said it was clear that Tsipras' leftist-led government was still holding out for a better deal. "He is still playing some kind of poker, waiting for something better," said Christos Memis, a veteran political analyst now in charge of the respected news portal, Protagon.gr. "That is very unlikely to happen now before the poll [on Sunday]. What has become clear is that lenders don't trust Tsipras, they want him out and he is right when he says the differences are ideological, it is no longer just about him."
9.57am BST
And could those talks in fact actually take place after all?
Greek government is thinking of returning to the negotiating table by tonight, Greek media report
9.53am BST
Attempts are being made to get Athens back to the negotiating table, according to Austrian finance minister Hans Joerg Schelling.
But he said he was not very optimistic about the possibility of holding further talks with Greece.
Austria Finmin Schelling Says Euro Working Group Is Holding Twice-daily Conference Calls On Market Situation
9.42am BST
Bit of housekeeping, the UK GDP figures:
UK Q1 #GDP revised to 0.4% from +0.3% as expected, but current account deficit unexpectedly widened to 26.5bn from 25.3bn #FX ^FR
9.34am BST
More from Rajoy, courtesy Reuters:
Mariano Rajoy said on Tuesday that if Greece were to leave the euro it could send the message that the common currency union is reversible and other countries could follow.
"What would happen if Greece came out of the euro? There would be a negative message that euro membership is reversible," Rajoy said in a radio interview.
"People may think that if one country can leave the euro, others could do so in the future. I think that is the most serious problem that could arise (from a Greek exit)."
9.31am BST
Spain's prime minister Mariano Rajoy has added his voice to the chorus of European leaders saying that a no vote in Sunday's referendum means Greece will have to leave the eurozone. Rajoy, who faces his own anti-austerity political rivals in Podemos, told Spanish radio:
If Tsipras loses the referendum, this will be good for Greece. If he wins the referendum, Greece has no alternative other than to leave the euro.
9.19am BST
We've been gathering views from Greeks on their views on the current turmoil and whether they want to remain in the eurozone, and the results from 100 people are here:
Related: Greece's euro-referendum: 100 Greeks give their view
9.16am BST
The European Central Bank has admitted that Greece may end up leaving the euro.
In an interview with France's Les Echo, ECB executive board member Benoit Coeure said a Grexit could happen, although it was not what the Bank or other EU institutions wanted. He said:
A Greek exit from the eurozone, so far a theoretical issue, can unfortunately not be excluded any more.
The wind is slowly turning against #Greece. Markets not panicking, EU allies walking away, #ECB no longer ruling #Grexit out.
9.06am BST
And according to Reuters, there may be no need for the drachma's return after all:
Greece will not leave the euro zone, the country's foreign minister Nikos Kotzias told China's Ambassador to Greece Zou Xiaoli, according to a statement on China's Foreign Ministry website.
"Greece will not leave the euro zone, and is willing to work with China to further develop bilateral relations and practical cooperation in all areas," the Foreign Ministry statement cited Kotzias as saying.
8.59am BST
This might be a bit premature, given we haven't had the referendum yet, although with the speed at which events are happening, who can say:
#ToPotami MP @htheoharis just tweeted that there's a team from the General Accounting Office in Maximos Bldg preparing plan for drachma!
8.58am BST
Here's the latest German unemployment figures:
German Unemployment Change Jun: -1K (est -5K; prev -6K) -Unemployment Rate Jun: 6.40% (est 6.40%; prev 6.40%)
8.54am BST
Italian prime minister Matteo Renzi has been one of the closest allies of Greek prime minister Alexis Tsipras, but yesterday he added his voice to the chorus of leaders saying the referendum was a vote on Greece's eurozone membership.
And now he has perhaps shown one reason why he is losing patience with the Greek government:
Italian PM Renzi: "We haven't scrapped early retirements for Italians so that the Greeks could keep theirs". #Greece (@sole24ore)
8.48am BST
The market falls are accelerating as the uncertainty continues:
8.35am BST
Here's our latest update on the situation from Jennifer Rankin:
Greece is on course to miss a crucial debt repayment on Tuesday, amid an ongoing and bitter row with creditors about who is to blame for the breakdown in talks on its eurozone future.
After five years of painful austerity and four months of wrangling with its creditors, Greece's international bailout will come to an end on Tuesday, as a a1.6bn (1.13bn) payment to the International Monetary Fund falls due.
Related: Greece on course to miss crucial debt repayment
8.33am BST
When is a default not a default? Many have been saying that if Greece does not pay the a1.6bn due to the International Monetary Fund by tonight's deadline that does not count. Gary Jenkins, chief credit strategist at LNG Capital, is not so sure:
Greece is due to pay the IMF today. It appears that they will not make the payment. There has been lots of talk that this is not really a default. Indeed the rating agencies have stated that they would not consider a non-payment as a default. All I can say on this matter is that if you do not pay the absolute last lender of resort I think that's a default.
My take on it is that if the Greek people vote 'No' to the proposals that Mr Tsipras may feel vindicated and insist upon a new round of negotiation. However the probable damage done to the economy by recent events will make this a largely Pyrrhic victory. It is possible that the Institutions will restart negotiations but it is equally likely that they would indeed regard such a result as a step towards exit from the Eurozone. I'm leaning towards more negotiations but with little additional support from the ECB so more damage to the economy.
If the Greek people vote 'Yes' then it is difficult to see how Mr Tsipras can remain as Prime Minister. Under this scenario a new government is likely to be formed that will accept the Institutions terms which I guess may be eased somewhat to reflect the new economic conditions and to try and build a new relationship between the parties.
8.21am BST
Not that we thought they had but:
Russia Reiterates Greece Hasn't Applied For Financial Aid: RIA
8.08am BST
European markets edge lower in early trading
8.01am BST
If Greece does default on its payment to the IMF it will be following an historical precedent. The Economist says:
The first recorded sovereign default was in the 4th century BC when ten Greek cities failed to honour loans from the temple of Delos.
7.59am BST
Away from Greece, a couple of other bits of economic news due today:
9.30 BST UK final revision of first quarter GDP
7.54am BST
As if the stakes were not high enough, Greece is threatening a court injunction against the EU institutions to block any exit from the eurozone, according to the Daily Telegraph:
"The Greek government will make use of all our legal rights," said the finance minister, Yanis Varoufakis.
"We are taking advice and will certainly consider an injunction at the European Court of Justice. The EU treaties make no provision for euro exit and we refuse to accept it. Our membership is not negotiable," he told the Telegraph.
7.41am BST
Good morning and welcome to yet another crunch day for Greece.
The country faces a deadline to pay a1.6bn to the International Monetary Fund by the end of the day, at the same time as its bailout extension negotiated in February runs out.
Related: Europe's big guns warn Greek voters that a no vote means euro exit
The offer published on Sunday incorporated a proposal from Greece that would set value-added tax rates on hotels at 13 percent, rather than at 23 percent as originally planned in the lenders' proposals. It was not immediately clear whether there would be any additional changes.
If the offer were accepted, the euro zone finance ministers could adopt a statement saying that a 2012 pledge to consider stretching out loan maturities, lowering interest rates and extending an interest payment moratorium on euro zone loans to Greece would be implemented in October.
In a sign that battle lines continue to be drawn EU leaders have turned Sunday's proposed referendum into an in/out vote on Greece's position in the euro, when it is clearly about the creditors proposal, but given that polls appear to suggest a majority of the Greek population would prefer to stay in the euro, it suits the narrative of the EU to peddle that particular line.
In fact EU Commission President Juncker strayed a little too far into the realms of bad taste yesterday, urging the Greek population not to commit suicide by voting No, which in a country that has seen suicides soar as a result of EU policies, was crassly insensitive, and could well turn out to be a massive own goal, if the vote is indecisive. Maybe that explains last night's late move to make a fresh attempt at trying to reach a deal by the EU Commission President, but in any event the deal was rebuffed by the Greek PM, with the only concession appearing to be on VAT for hotels being held down at 13%, instead of raised to 23%.
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