New Greek proposal improves on last week’s offer: Greek official

That is hardly news since almost everything Greece does disappoints those leaders, but this time it was more frustrating than usual. In private however members of his government are gloomy.

“You know, there was a promise for today”.

An impatient Lithuanian President Dalia Grybauskaite said “There was a promise for today”.

The Greek government on Tuesday managed, yet again, to disappoint the ministers of the eurozone.

The decision leaves the Greek banks in a stranglehold, as they struggle to replenish cash machines in the coming days.

“I’m extremely somber about this summit“. But any examination of forgiving debt or extending new credit must also include a frank acknowledgment of the reforms that Greece must commit to – and in a timely manner.

“Our inability to find agreement may lead to the bankruptcy of Greece and the insolvency of its banking system”, European Union President Donald Tusk said. German Chancellor Angela Merkel has warned that a bailout will only be possible if Greece promises to make major economic reforms such as pension cuts and tax hikes.

Participants said Tuesday’s talks were constructive but the outcome still depends on the substance of the final Greek proposal.

However, euro zone sources in Brussels said ECB President Mario Draghi had assured finance ministers that the central bank would keep Greek lenders afloat this week as long as negotiations were under way. Greek Finance Minister Euclid Tsakalotos instead made a presentation and discussed key issues.

The referendum was preceded by several rounds of talks between Athens and its major global creditors on Greece’s debt settlement before the previous bailout program expiry on June 30, which resulted in no agreement.

Greek banks are running out of cash even after the government placed limits on how much depositors can withdraw.

Normal commerce is now impossible in Greece. But Greeks are holding tightly onto what they have. And suppliers are demanding that businesses pay cash up front.

At the heart of the bitter dispute is a disagreement about what to do with Greece and its debt — an estimated to be more than 300 billion euros ($332 billion). “All of us are responsible for the crisis and all of us have a responsibility to resolve it”. “I believe something better will happen”.

He said in a statement released by the Finance Ministry that it is crucial there is a “proper resolution” involving debt restructuring immediately.

In a sign that Athens is keen to seek a new deal, Greece’s combative finance minister, Yanis Varoufakis, resigned on Monday, apparently under pressure from other euro zone finance ministers who did not want him as a negotiating partner.

Assuming formal negotiations can begin, it’s far from clear that the two sides will be able to agree terms for a bailout, which would be Greece’s third since 2010. Greece’s stock market remains closed since last week amid the bank closures.

The upcoming meetings follow Tsipras’ bigger than expected win in Sunday’s bailout referendum, when 61 per cent of Greek voters rejected the measures creditors had proposed in exchange for loans.