European sovereign debt crisis timeline

The International Monetary Fund (IMF) has criticised the EU over the terms of the bailout agreement, which had been agreed between Greece and the eurozone leaders on Monday.

The IMF said that the Greek public debt was now "highly unsustainable" and called for urgent debt relief on a scale "well beyond what has been under consideration to date", the BBC reports.

The European Central Bank (ECB) has decided to leave unchanged the volume of its emergency liquidity assistance available to Greek banks.

It will remain at EUR 89 B, as reported by a ECB spokesman quoted by the AFP.

Eurozone finance ministers are due to convene early this afternoon following their emergency meetings on Saturday and Sunday and a 17-hour European Council of leaders from Sunday afternoon until Monday morning. Following the frenzy, the finance ministers will examine ways to ensure bridge financing for Greece while details of a third bailout package for Greece are penned.

Eurozone leaders are to reconvene early on Monday morning to discuss a compromise proposal on a third bailout for Greece as the emergency summit, which started on Sunday, lasted overnight.

Growing discord has started to emerge hours before Sunday afternoon's Eurozone summit which is due to decide whether to grant Greece another bailout package or move to "Plan B".

"Italy does not want Greece to exit the euro and to Germany I say: enough is enough," Italian PM Matteo Renzi told Il Messaggero newspaper.

European Council President Donald Tusk has cancelled the summit meeting of European Union heads of government scheduled to discuss Greece on Sunday.

Tusk wrote on Twitter that only a "EuroSummit", one of leaders of Eurozone member states, will take place at 16:00 local time - when the European Council was due to begin.

Greece on July 12 faced a final EU summit to clinch a deal that would stop Athens crashing out of the euro after divided eurozone ministers halted "very difficult" talks on a new bailout overnight.

According to media reports, Eurozone finance ministers have demanded deeper reforms from Greece in exchange for opening talks on a third bailout to Athens.

This confirms the earlier observations made by analysts that EU member states such as Germany and the Netherlands are increasingly opposed towards the latest Greek proposals.

German Chancellor Angela Merkel has a rebellion on her hands as more than 100 German MPs threatened to revolt unless she remains firm in her demands to block a huge debt write-off as a new bailout plan for Greece.

Greece will extend its bank holiday later on Wednesday as the cash-strapped government in Athens struggles to strike a new aid deal with its eurozone partners, Reuters reported.