‘Yes’ vote on bailout may see Greek government resign

“So that cannot happen and will not happen”.

“The previous program has expired”.

The radical left government of Prime Minister Alexis Tsipras “may very well” resign if Greeks spurn its call to vote “No” in Sunday’s plebiscite, Finance Minister Yanis Varoufakis said on Thursday.

He also insisted that “Greece is, and will remain, in the euro“.

One of its lawmakers, Constantin Damavolitis, was expelled from the coalition benches for calling for a “Yes” vote. “I welcome it”, Varoufakis told state television.

If Greece can’t get more bailout money from Europe soon, it will have to pay pensioners and public sector workers with IOUs – perhaps within weeks. The International Monetary Fund says creditors must offer Greece discounted interest rates and a longer repayment period.

When asked whether the Greek banks would open next Tuesday as normal, Varoufakis said “absolutely.”

Fitch said it now considered a default on privately-held debt “probable”.

With no bailout program in place, Greece has imposed capital controls and banks are shut for a fourth day.

Eurozone finance ministers were due to discuss the Greek request on a conference call at 1530GMT, but the initial reaction from ministers and senior officials was that the letter contained elements that ministers would find hard to accept.

But those hopes were quickly dashed.

A defiant Tsipras said in a TV address Wednesday that a “No” vote would strengthen his hand in negotiations with worldwide creditors after six months of tortuous talks have failed to produce a deal.

The terms of the rescue package have officially expired, it is uncertain whether they can be offered again, and eurozone leaders have said that they consider a “No” vote to mean a Grexit.

Tsipras’ office said the proposal was “for the full coverage of (Greece’s) financing needs with the simultaneous restructuring of the debt”.

“You can’t in all honesty expect us to talk with them in a situation like this”, he added.

“We are making an additional effort”.

In Athens, more than 10,000 “Yes” vote supporters gathered outside parliament despite a thunderstorm, chanting “Europe!”

Most huddled under umbrellas, including Athens resident Sofia Matthaiou.

GIORGOS HAZIDIMITRAKIS, Greece (through interpreter): Whether they give me only 120 euros or not, it’s the same thing.

“The world is watching us”, she said. “The creditors need to water down their positions, too“. This followed similar demonstrations on Monday which advocated a “No” vote, the direction preferred by Greek Prime Minister Alexis Tsirpas.

The question on Sunday’s ballot is whether they accept or reject a reform proposal made by creditors during negotiations last week. He would also have to change his position on Sunday’s referendum. The Greek side has long called for debt relief, saying its mountainous debt is unsustainable.

Tsipras said in his speech on Wednesday, “A “No” vote is a decisive step toward a better agreement that we aim to sign right after Sunday’s result”.

Tsipras said he wanted to renegotiate the terms of Greece’s European Union bailouts that resulted in billions being loaned to the country, which was on the brink of a default, in exchange for severe – and deeply unpopular – austerity measures.

“We owe it to the Greek people”, she said at the Bundestag on Wednesday. Automated banking centers have continued operating, but with sharp restrictions on the amount of euros account-holders can withdraw.

The elderly have been hit particularly hard, with tens of thousands of pensions unpaid as of Tuesday afternoon.