Investing.com - The Greek government requested a new two-year bailout program on Tuesday, with just hours to go before the county’s current bailout expires and it defaults on a loan repayment to the International Monetary Fund.
Prime Minister Alexis Tsipras requested aid from the European Stability Mechanism to cover all of the country’s financial needs for the next two years, along with a restructuring of debt.
"The Greek government will until the end seek a viable agreement within the euro,” it said in a statement.
Euro zone finance ministers were to hold a teleconference later in the day to discuss the latest Greek proposal.
Greece’s existing bailout program officially expires at midnight and €1.6 billion loan repayment to the International Monetary Fund is also due.
Without a rescue package in place Athens will almost certainly default. Earlier in the day Greek Finance Minister Yanis Varoufakis said Athens would not make the deadline for the repayment.
A default by Greece would add to fears over the country’s solvency and fuel doubts over the condition of Greek banks and the collateral they use for European Central Bank loans.
Negotiations between Greece and its creditors broke down on Saturday after Prime Minister Alexis Tsipras called for a snap referendum to be held on July 5 on whether to accept the terms proposed by lenders for extending the country’s bailout.
European leaders have said the referendum is ultimately a vote on whether to remain in the euro zone.