Greece warned to submit fresh bailout proposals

Greece has been warned that it must submit fresh bailout proposals within the coming days or face default, after a meeting of euro zone finance ministers failed to resolve the deepening Greek debt crisis.

Amid fears that the indebted country is lurching inexorably towards default, finance ministers from across the European Union, including Michael Noonan, said that a ‘Plan B’ of Greek default was now actively been considered, ruling out any further concessions for Greece.

An emergency summit of euro zone prime ministers has been called for Monday evening in Brussels to deal with the escalating crisis.

A defiant Greek finance minister Yannis Varoufakis told reporters after the meeting that Greece had presented a comprehensive proposal “to end the Greek crisis once and for all” but this had been rejected by creditors. “We’re dangerously close to a state of mind that accepts an exit,” Mr Varoufakis said.

While EU economics commissioner Pierre Moscovici said lenders was “ready to work day and night to get the agreement that Greece and the whole of Europe needs,” he stressed that the EU had already made significant concessions, particularly in terms of primary surplus targets.

In a sign of the deepening acrimony between the two sides, IMF managing director Christine Lagarde called on Greece to come forward with “tangible, deliverable measures” and said that dialogue needed to be restored with ”adults in the room.” Eurogroup chairman Jeroen Dijsselbloem said the Greek government had been elected “to look out for the future of their people.”“We need politicians that are prepared to tell the truth to their people.”

Greek bank accounts

Asked about reports that up to €2 billion has been withdrawn from Greek bank accounts in the last three days, Mr Dijsselbloem said that the reports were “worrying.” The European Central Bank is keeping the Greek banking system afloat with more than €84 billion of emergency liquidity as Greek individuals and businesses withdraw their cash from Greek bank accounts.

Ms Lagarde also ruled out the possibility of a 30-day “grace period” for Greece if it misses its €1.5 billion loan repayment on June 30th, confirming that Greece would technically be in default on July 1st if it misses the payment, a development that could prompt the European Central Bank to reassess its provision of emergency funding to Greece.

With Greek prime minister Alexis Tsipras due to meet Russian president Vladimir Putin in Russia on Friday, fears are mounting that the euro zone’s most indebted country could be heading towards a euro zone exit.

Greek authorities have confirmed that they do not have the cash to meet €1.5 billion repayment due to the IMF on June 30th and up to €7 billion due to the European Central Bank in July and August.

Earlier, stock markets had surged amid reports in German media that a bailout extension was under discussion in the meeting, but this proved unfounded.

Speaking on his way into the meeting, Minister for Finance Michael Noonan confirmed that Ireland was consulting the European Central Bank on contingency plans for a potential Greek exit from the euro zone.