By Jonathan Davies

Greece is holding last minutes talks over whether or not to accept creditors’ proposals to agree a new deal on its debt, according to reports in Greece.

With a 22:00 GMT deadline today (Tuesday) to make a €1.6 billion repayment to the International Monetary Fund (IMF), an deal could free-up funds to make that payment.

Greek media claims the country’s government is considering last-minute proposals put forward by European Commission president Jean-Claude Juncker on Monday night.

It the latest proposals are not agreed to, Greece will almost certainly miss the payment and default on its debt.

Resignation

Greek Prime Minister Alexis Tsipras says he may resign if the country votes in favour of austerity in Sunday’s snap referendum.

Mr Tsipras said Greece would be able to negotiate a better settlement to the financial crisis, if it votes for austerity.

The country’s leader called a surprise referendum on reform proposals as talks with creditors collapsed.

But if Greece votes in favour of more cuts, with a view to securing a new deal, Mr Tsipras said he may not stay in office to oversee them.

Speaking in a state address, Mr Tsipras said: “We ask you to reject it [creditors’ austerity proposals] with all the might of your soul, with the greatest margin possible.”

“If the Greek people want to proceed with austerity plans in perpetuity, which will leave us unable to lift our head… we will respect it, but we will not be the ones to carry it out,” he said.

EU leaders have warned that a vote in favour of rejecting creditors’ proposals would result in Greece leaving the eurozone, however Tsipras has said he doesn’t want that to happen.