Alexis Tsipras said the international creditors did not accept the new Greek reform proposals prior to another round of negotiations on Wednesday. Fears are now escalating that Greece could default and leave the eurozone.
The Greek Prime Minister is heading for emergency talks with the IMF and ECB at 1pm Brussels time, amid growing concern that a deal will not be reached tonight.
**Update: Alexis Tsipras is continuing intensive talks with his country’s international creditors, despite sharp differences over how to overcome the debt crisis. The BBC report that negotiations are expected to continue into the night in the hope that a deal can be reached before the finance ministers reconvene at 13:00 local time (11:00 GMT) on Thursday, ahead of a scheduled EU summit.
In his official Twitter account Tsipras said the international creditors have never been so persistent in rejecting reform plans, neither in Ireland nor in Portugal. This stance means they either don’t want an agreement or serve specific interests in Greece, he said.
The finance ministers of the 19 eurozone countries are to hold talks on Wednesday to sort out the details of the new Greek proposals. Tsipras will also meet ECB President Mario Draghi, IMF Managing Director Christine Lagarde and European Commission President Jean-Claude Juncker on Wednesday to try to strike a deal before the June 30 deadline to repay about €1.6 billion of IMF debt.
A broader meeting of all 28 EU members is scheduled for Thursday.
European stocks fell on the Tsipras statement. The Stoxx Europe 600 Index was down 0.5 percent to 396.69 at 13:08pm MSK. The Greek ASE Index fell 3.1 percent, ending its four-day upward trend, and is the biggest drop among Western European markets.