European Commission President Jean-Claude Juncker offered a last-minute opportunity to reach a new bailout deal with Athens ahead of Tuesday's IMF payment deadline.
As Reuters reports: “The offer published on Sunday incorporated a proposal from Greece that would set value-added tax rates on hotels at 13 percent, rather than at 23 percent as originally planned in the lenders' proposals. It was not immediately clear whether there would be any additional changes.
Under the offer, Prime Minister Alexis Tsipras would have to send written acceptance by Tuesday, in time for an emergency meeting of the Eurogroup of euro zone finance ministers to be held and agree to campaign in favor of the bailout in the planned July 5 referendum."
However, that last-minute proposal was rejected by the Greek government rejected. According to a Greek government official, cited by Reuters, Tsipras took into consideration the proposal, but said: "Tsipras will vote 'No' on Sunday".
TSIPRAS ASKS GREEKS TO VOTE 'NO'
"We ask you to reject [the proposal] with all the might of your soul, with the greatest margin possible," Tsipras said during an interview with state television on Monday, urging his fellow citizens to vote in an upcoming referendum against a bailout package proposed by Greece's creditors. "The greater the participation and the rejection of this deal, the greater the possibility will be to restart the negotiations to set a course of logic and sustainability."
Greece is facing a Tuesday deadline make 1.6 billion euro repayment to the International Monetary Fund (IMF), but the bill is likely to be left unpaid as Athens has been unable to reach a deal for an extension with its IMF and euro zone creditors. “How can we pay the IMF,” said Tsipras” when our banks have been all but suffocated out of existence?”
GOVERNMENT WILL RESIGN IF REFERENDUM VOTE 'YES'
The Greek Prime Minister has told the Greek people that if they vote to accept the terms of the
proposed aid deal with Greece's creditors - the European Commission, the IMF and the ECB - in Sunday’s referendum he would get the deal through parliament, then resign.
"If the Greek people want to proceed with austerity plans in perpetuity, which will leave us unable to lift our heads ... we will respect it, but we will not be the ones to carry it out," Tsipras said.