Greece was to submit a detailed bailout request to its EU partners in the eurozone Thursday in a last-ditch effort to save its collapsing economy and its membership in the European single currency.
Prime Minister Alexis Tsipras vowed on Wednesday that his country's new plan asking for billions in euros would contain "concrete proposals, credible reforms, for a fair and viable solution".
But other eurozone nations, led by Germany, are sceptical about Greece meeting austerity conditions attached to the loans, especially after Greeks in a referendum last weekend backed Tsipras's past rejection of tough terms on its last bailout.
"This is really and truly the final wake-up call for Greece and for us, our last chance," said EU President Donald Tusk on Wednesday.
Failure "may lead to the bankruptcy of Greece" and geopolitical problems for Europe, he said.
Leaders of the 28-nation European Union, including the 19 states that share the euro, are to hold a summit on Sunday billed as the "final deadline" for a deal.
While Europe has no provision under its treaties to force a country out of what is meant to be an "irreversible" monetary union, some legal advisers say it could be made to happen by kicking an errant state out of the European Union.
A demonstration of Greeks calling for their country to remain in Europe was to take place in central Athens late Thursday.
Brink of collapse
Greece, which has until midnight Brussels time (2200 GMT) to file its reform proposals for what would be its third bailout in five years, is teetering on the precipice of financial collapse.
Banks are closed and ATMs, whose daily withdrawal limit is capped at 60 euros ($67) per card holder, are expected to start to run dry any day now. The capital controls also ban overseas money transfers, isolating Greece and its population of 11 million from foreign suppliers of everything from food to medicine.
Authorities have extended the closure of the banks and the Athens stock market to next Monday.
The number of last-minute tourist bookings to Greece -- usually a European summer hotspot for its many sunbleached islands -- has plunged 30 percent over the past two weeks because of the uncertainty.
International markets, though, appear relatively sanguine about the possibility of contagion from a "Grexit", or Greek exit from the eurozone, despite an initial dip after the referendum.
In Asian trade on Thursday, the euro ticked up to $1.1095 against $1.1074 in New York the previous day.
US President Barack Obama has urged Europe to keep Greece in the eurozone.
US Treasury Secretary Jacob Lew said that "Greece's debt is not sustainable" and creditors needed to look at restructuring it -- something Germany in particular has said it will not do until Athens shows a commitment to reforms.
France and Italy have expressed a strong desire to see Greece remain in the euro club, even if their line with Athens had become firmer.
French Finance Minister Michel Sapin told French radio on Thursday that "we are starting to see the beginnings of chaos in Greece".
He asked, "Is it in European citizens' interests... to have a country crumble where its authority dissipates?" and pointed out that Greece is a country of transit for migrants trying to get to Europe.
Difficult' situation
A team of French experts was helping Greece prepare its crucial bailout reform plan for submission, Greek media reported.
Greece's new finance minister, Euclid Tsakalotos, disappointed his eurozone counterparts when he turned up to a meeting Tuesday without any concrete plans for ending the standoff.
On Wednesday, Tsakalotos asked the eurozone's crisis fund, the European Stability Mechanism, to give a three-year loan for an unspecified amount to Greece.
He promised that, in exchange, Greece would "immediately implement a set of measures as early as the beginning of next week" dealing with pensions and tax reform -- the two main areas of disagreement with creditors.
There was no immediate reply from the ESM made public.
The European Central Bank on Wednesday left untouched its cap on a 89-billion-euro ($99-billion) lifeline it had previously extended to Greece's banks.
Throughout the turmoil of the past couple of weeks, the ECB has appeared to want to take a neutral path that would neither help Greece out of its hole nor push it in deeper.
But its chief, Mario Draghi, who in 2012 famously defended the euro by saying the ECB would do "whatever it takes" to save the currency, had doubts about Greece staying in the eurozone.
On Wednesday as he arrived in Rome on a flight from Brussels, he was asked by Italian journalists if Greece's situation would be successfully resolved.
"I don't know. This time, it's really difficult," Draghi said, according to the newspaper Il Sore 24 Ore.
AFP
Thu Jul 09 2015
Other Eurozone nations are sceptical about Greece meeting austerity conditions attached to the loans.
Who is Prabowo Subianto, incoming president of Indonesia?
A wealthy ex-general with ties to Indonesia's popular outgoing president and its dictatorial past, looks set to be its next leader.
Iran's supreme leader says Hamas leader's death will not halt 'Axis of Resistance'
The "Axis of Resistance", built up with years of Iranian support, includes Hamas, the Lebanese Hezbollah group, the Houthi movement in Yemen, and various Shi'ite groups in Iraq and Syria.
Putin says Russia willing to seek compromises between Iran and Israel
Russia is ready to help seek compromises between arch-foes Israel and Iran, President Vladimir Putin said on Friday, saying these would be difficult but possible.
What proposals will Russia push at the BRICS summit?
The proposal is also to establish a BRICS reinsurance company to allow uninterrupted shipment of goods and key commodities between members.
Indonesia's free meals plan in the spotlight as Prabowo readies for office
Prabowo calls the programme one of the main drivers of economic growth, eventually set to add an estimated 2.5 million jobs.
Astro AWANI's revamped English news website, AWANI International, launches on Oct 21
Astro AWANI's revamped English platform delivers in-depth global news and expert analysis to keep you informed on key developments.
Israeli strikes kill 33 people in Jabalia refugee camp in Gaza, medics say
Residents of Jabalia said Israeli tanks had reached the heart of the camp after pushing through suburbs and residential districts.
Liam Payne's ex-partner calls for media restraint after 'painful' death
Cheryl Tweedy used her statement to urge the media to remember they had a seven-year-old son, Bear, who could read the reports.
Analysts: Indonesia's strong MoF leadership team to boost investor confidence
Sri Mulyani Indrawati as head of Indonesia's Ministry of Finance is expected to instil confidence among investors.
Biden offers both a carrot and a stick to Israel as his term nears an end
Israel has frequently resisted US advice and has caused political difficulties for the Biden administration.
Putin says BRICS will generate most of global economic growth
Russian President Vladimir Putin will host a summit of the group in the city of Kazan on Oct. 22-24.
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.