Greece to hold referendum on controversial bailout deal

PanARMENIAN.Net - Greece will hold a referendum on July 5 on a controversial bailout deal with foreign creditors, Prime Minister Alexis Tsipras has announced, according to BBC News.

In a televised address, he described the plan as "humiliation" and condemned "unbearable" austerity measures demanded by creditors.

The Greek government earlier rejected the proposals, aimed at avoiding the country defaulting on its debt.

Greece has to make a €1.5bn ($1.7bn; £1.06bn) IMF debt repayment on 30 June.

In the speech, Mr Tsipras said: "These proposals, which clearly violate the European rules and the basic rights to work, equality and dignity show that the purpose of some of the partners and institutions was not a viable agreement for all parties, but possibly the humiliation of an entire people." "The people must decide free of any blackmail," he added.

The proposal would have released €15.5bn of funding, €1.8bn of which would have been available now. However, that was conditional on Greece carrying out reforms.

The offer is due to be discussed at a meeting of eurozone finance ministers on Saturday.

German Chancellor Angela Merkel had urged Athens to accept what she called an "extraordinarily generous" offer.

The protracted negotiations are stalled over what reforms Athens is prepared to take, with disputes emerging on pensions and increasing Value Added Tax.

If Greece does default, it could exit the eurozone, with possible repercussions for the rest of Europe and the world economy.