Update | Germany rejects Greek proposal for loan extension in bid to avoid default

Germany on Thursday rejected a request by Greece to its European partners for a six-month extension to its EU loan programme, saying it was “not a substantial proposal for a solution”.

“The letter from Athens is not a substantial proposal for a solution,” said  a spokesman for German Finance Minister Wolfgang Schaeuble in a short statement.

“In truth it aims at bridge financing, without meeting the requirements of  the programme. The letter does not meet the criteria agreed upon in the Eurogroup on Monday.”

Earlier on Thursday Greece  formally asked the EU for a six-month loan extension, officials in Athens and Brussels said, hoping to avoid default and draft a new deal with its creditors.

Eurogroup chief Jeroen Dijsselbloem said on his Twitter account that he had received the request, without giving further details.

“Received Greek request for six months extension,” said Dijsselbloem, who is also the Dutch finance minister.

Athens is trying to sidestep the restrictions of its bailout, but a number of eurozone hardliners including Germany are likely to resist the move.