Greece seeks two-year debt deal as bailout talks go down to the wire
Athens admits it won't make the repayment to the IMF by the deadline
Greece requested a two-year rescue deal with the European Union on Tuesday, after admitting it would fail to make a repayment to the International Monetary Fund with just hours left before its EU bailout expires.
The zero-hour appeal came amid a flurry of actions aimed at preventing a chaotic euro-zone exit that could have untold repercussions on international markets and the EU.
The Greek premier's office said Athens had requested an agreement with the European Stability Mechanism "to fully cover its financing needs and the simultaneous restructuring of debt".
The ESM, created in 2012, is designed as a means to handle financial crises in the euro zone.
The move prompted a quick reaction from Eurogroup chief Jeroen Dijsselbloem, who tweeted that the euro-zone finance ministers would hold a teleconference on Tuesday night to discuss the Greek request.
Athens' proposal followed European Commission chief Jean-Claude Juncker's attempt to clinch a "last-minute" solution before Greece holds a referendum on the reform proposals on Sunday. Juncker told the Greek premier a deal would involve accepting the package of reforms that Greece's EU-IMF creditors made at the weekend and backing a 'Yes' vote in the plebiscite.
Prime Minister Alexis Tsipras has urged Greeks to vote 'No' and reject creditors' tough demands in the referendum, but has also pleaded for an extension of the EU bailout, which was expiring on Tuesday last night.