Late-2000s financial crisis

Eurozone Finance Ministers have turned down a request by Greece to continue its bailout program beyong June 30.

Tensions between Greece and the rest of the Eurozone soared after PM Alexis Tsipras called in a referendum on July 5 so that Greeks have their final say on the international lenders' latest bailout proposal.

Under mounting pressure, Greece presented its new reform proposals to its Eurozone partners on Monday aimed at the release of 7.2 bn euros worth of bailout funds benchmarked for Greece. An agreement is needed to stave off a Greek default.

The International Monetary Fund, deadlocked with Greece over further financial aid, approved a new loan installment for Cyprus on Friday, now the only other eurozone country receiving its bailout support.

Eurozone leaders will hold an emergency summit on Monday to try to avert a Greek default after bank withdrawals accelerated and government revenue slumped as Athens and its international creditors remain deadlocked over a debt deal.

By Jan Strupczewski

Greece has already received debt relief from its eurozone creditors equal to half of its 2013 GDP in net present value terms, the eurozone bailout fund said in its annual report, noting Greek public debt was now high but sustainable.

Reuters reports that top EU officials have for the first time discussed the possibility of a Greek default, with three main scenarios emerging. The least likely, according to reports, is a deal to free-up bailout funds in time to meet all of Athens’ June obligations to creditors, particularly the IMF.

Greece?s prime minister headed for a showdown with creditors on Wednesday in Brussels, where each side would present proposals in the hope of reaching a deal to unlock bailout loans and save the country from financial disaster.

Greeces place in the euro currency bloc looked increasingly shaky on Saturday after eurozone nations rejected a monthlong extension to its bailout program and the prime minister called for a risky popular vote on the country's financial future.

European bankers and officials sought to minimize the wider risk from a possible Greek default as talks about the country’s fiscal future remain deadlocked, with both sides waiting for the other to blink first.

Even as the ECB’s governing council continued its “drip-feed” method of incrementally raising a ceiling for Emergency Liquidity Assistance towards Greece – by 1.1 billion euros on Tuesday for a total of 80 billion euros – media assessments remained negative in the absence of a bailout deal extension.