Greek Prime Minister Alexis Tsipras
is expected to present new proposals at a Eurozone emergency summit on
his country's growing debt crisis.
The plan is said to include a
demand for Greece's debt to be cut by up to 30%, after voters rejected
the terms of an international bailout on Sunday.
Athens has been urged to make "serious" proposals as Greece faces the risk of default on its $331bn (£213bn) debt.
Greece's banks are to stay closed on Tuesday and Wednesday. Minute-by-minute updates
Nervous and worried
Eurozone finance ministers will begin their meeting in Brussels later on Tuesday before a full summit of eurozone leaders.
Mr Tsipras may be prepared to accept many of the demands made by Greece's creditors, the BBC's Chris Morris in Athens reports.
But
- emboldened by his resounding win in the referendum - Mr Tsipras also
wants changes and substantial debt relief, our correspondent says.
Central to any negotiations will be new Greek Finance Minister Euclid Tsakalotos, who replaced outspoken Yanis Varoufakis on Monday.
Mr Tsakalotos has admitted he is nervous and worried about the crisis, but said Greece deserved a better deal.
However,
Germany earlier warned against any unconditional write-off of Greece's
debt, saying it would destroy the single currency.
"I really hope
that the Greek government - if it wants to enter negotiations again -
will accept that the other 18 member states of the euro can't just go
along with an unconditional haircut [debt write-off]," said German
Economy Minister Sigmar Gabriel.
Meanwhile,
the European Central Bank (ECB) said it would maintain existing levels
of emergency cash support for Greek banks, which are running out of
funds and on the verge of collapse.
However, it told the banks to lodge more collateral with the Bank of Greece, reducing the amount of spare cash the banks have.
Media captionRos Atkins explains the banking restrictions and the impact that they are having on everyday life in Greece
Greece's
Economy Minister, Georgios Stathakis, had earlier told the BBC that the
ECB had to keep Greek banks alive for seven to 10 days so that
negotiations could take place.
Last week, Greece ordered banks to
close after the ECB froze its financial lifeline following the breakdown
of bailout talks in Brussels.
Capital controls have been imposed, with people unable to withdraw more than €60 a day from cash points.
Analysis: BBC's Chris Morris in Athens
With
pressure growing on the Greek banking system, the eurozone summit will
have to give a pretty clear signal that it thinks progress can be made.
But
the two most important leaders in the eurozone, Angela Merkel and
Francois Hollande, appear to be struggling to find a common position on
Greece in the wake of Sunday's "No" vote.
Broadly speaking, some
countries - led by France - are pushing for a deal that will give Greece
some breathing space to stay in the eurozone.
Others - led by Germany - are under greater political pressure at home, and wonder whether such a deal is possible.
It
all leaves Greece in the most precarious position it has experienced in
five years of wrenching economic crisis. The best that can be said is
that it could go either way. Peston: ECB tightens squeeze on banks Greece gambles future What does Europe make of 'no' vote?
On
Monday, French President Francois Hollande and German Chancellor Angela
Merkel said the door was still open for debt negotiations.
"It is
now up to the government of Alexis Tsipras to make serious, credible
proposals so that this willingness to stay in the eurozone can translate
into a lasting programme," Mr Hollande said.
Mrs Merkel added
that Mr Tsipras should offer "precise suggestions... for a medium-term
programme that will lead Greece to prosperity and growth again."
Media captionGreek economy minister Giorgos Stathakis: 'Banks have cash for a number of days'
Greece's last bailout expired last Tuesday and Greece missed a €1.6bn payment to the IMF.
The
European Commission - one of the "troika" of creditors along with the
IMF and the ECB - wanted Athens to raise taxes and slash welfare
spending to meet its debt obligations.
Greece's Syriza-led
left-wing government, which was elected in January on an anti-austerity
platform, said creditors had tried to use fear to put pressure on
Greeks.
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