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Greece 'Evaluating' Last-Ditch Bailout Offer

Greece 'Evaluating' Last-Ditch Bailout Offer

The Greek government is reported to be considering a final bailout offer, just hours before it is expected to default on a €1.6bn repayment.

A Greek official confirmed there were "initiatives" shortly after Greek newspaper Kathimerini said that prime minister Alexis Tsipras was "evaluating" a proposal made on Monday by EU Commission president Jean-Claude Juncker.

It included options for debt relief and more help for Greeks on low incomes but would still come with demands on austerity.

Sky's Robert Nisbet, in Athens, said that sources were indicating the Greek government - elected on an anti-austerity ticket - may accept further spending cuts in return for debt management and there was speculation Mr Tsipras was to fly to Brussels.

It is understood Mr Tsipras would also have to change his position on Sunday's referendum, having previously urged Greeks to vote against the creditors' proposals.

He announced the vote at the weekend after pulling out of bailout talks, accusing the country's lenders of blackmail.

Polls have since suggested Mr Tsipras was on course to lose that vote, with a majority of Greeks favouring membership of the eurozone over a potential default and return to the drachma.

Earlier on Tuesday, the prospect of a deal looked bleak as the clock ticked down to the loan repayment to the International Monetary Fund and the end of its current bailout.

Mr Tsipras admitted on Monday night that his country was unlikely to meet the debt but he remained defiant in an interview with Greek TV in which he 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 the planned referendum is not about taking a bailout but 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's 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."

Financial markets remained in the doldrums on Tuesday following sharp falls on European stock markets the previous day.

Investors remain nervous on the ramifications of a Greek debt default, with the euro weakening further against the pound and dollar.