By Jonathan Davies

Greece is set to request a six month extension of a loan to keep the country's running, according to various media reports.

The loan would not be an extension of the current bailout package however, which imposes strict austerity measures.

Talks between European finance ministers collapsed yesterday (Tuesday) after Greece's Yanis Varoufakis rejected an offer to extends its €240bn (£178bn) bailout programme, calling it "absurd".

The recently elected anti-austerity Syriza party vowed not to pay its bailout debt in full.

If a deal is not reached between Greece and the rest of Europe, the Greek government is likely to run out of money in a matter of months. The current programme ends on 28 February.

The European Central Bank (ECB) will meet today to decide whether or not to continue providing emergency funding for Greek banks. Greece has been given until Friday to accept an offer of an extended bailout programme. But Greece is keen to agree on a new loan, without the same austerity measures, to give it time to find a new, permanent solution to its debt crisis.

Greece Prime Minister Alexis Tsipras has called for a vote to end the country's austerity measures on Friday, the deadline set by the eurozone.

"We will not succumb to psychological blackmail," Mr Tsipras told parliament.

"We are not in a hurry and we will not compromise."

Earlier, German Finance Minister Wolfgang Schaeuble said Greece needed to make up its mind.

"None of my colleagues so far understands what Greece wants... whether Greece itself knows is not clear either," he said.

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