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Greece To Default As Bailout Extension Refused

Eurozone finance ministers have rejected a last-minute bid for an extension of Greece's bailout just hours before its expiry and a possible IMF default.

But talks are expected to continue on Wednesday on a new financial aid plan proposed by Athens amid uncertainty over Greece's place within the European Union.

After a conference call held tonight to discuss the Greek proposal, Slovakia's finance minister Peter Kazimir wrote on Twitter: "Last deadline for Greece program extension was (the) weekend.

"Due to parliamentary procedures, unable to extend program beyond today," he added.

A Greek government source said: "The Eurogroup just finished. We will continue tomorrow morning to allow finance ministers to examine the proposals of the Greek government."

Earlier Greece submitted a plan to creditors for a last-minute rescue deal prior to the likely default.

A statement released by Greece's Prime Minister Alex Tsipras said Athens remained at the negotiating table.

The two-year proposal submitted to the eurozone's rescue fund included a request for debt restructuring.

"The Greek government proposed today a two-year deal with the ESM (European Stability Mechanism) to fully cover its financial needs and with parallel debt restructuring," it said.

Thousands of people have rallied in Athens tonight in support of a bailout deal with international creditors, which has been rejected by Mr Tsipras.

At least 20,000 people, many waving European and Greek flags, gathered in front of parliament in Syntagma square five days before a referendum on whether or not to accept the bailout.

German Chancellor Angela Merkel earlier told EU leaders she does not expect any new developments on solving the Greek debt deadlock today.

Mrs Merkel added that the consequences of the Greek crisis can be cushioned by Europe and there is no need to fear the effects on the eurozone.

Mr Tsipras admitted on Monday night that his country is unlikely to meet tonight's €1.6bn loan repayment .

In an interview with Greek TV, he remained defiant and rounded on the European Central Bank's decision not to raise its funding limit for Greek banks.

"How is it possible the creditors are waiting for the IMF payment while our banks are being suffocated," he said.

European leaders have warned that a referendum planned for Sunday is not about taking a bailout, but about Greece's future in the monetary union.

As the financial crisis deepened, it was confirmed that banks and the country's stock exchange would remain shut until 7 July, and the daily limit on withdrawals from cash machines would be limited to just €60.

Concerned British tourists who are heading to Greece have been told the ATM limits will not apply to foreign debit cards - but in practice, some cash machines may not be able to tell the difference.

The Association of British Travel Agents is advising visitors to take all of the euros they may need in cash, but says credit and debit card transactions in shops and restaurants will be unaffected.

Sky News' Siobhan Robbins, in Corfu, said credit cards were still being accepted though businesses were hungry for cash.

Taverna owner Dimitris Kourkoulis claimed his business was benefiting from tourists bringing extra cash.

He said: "The fact that people are bringing more cash with them, they have more cash to spend and even our tips have gone up by 40% this month."