Greece debt crisis: Tsipras to present new plan at eurozone summit

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 (5 July).

Athens has been urged to make "serious" proposals as Greece risks defaulting on its €323 billion ($356bn; £228bn) debt.

Greece's banks are to stay closed on Tuesday and Wednesday.

The European Central Bank (ECB) is maintaining its pressure on Greek banks, refusing to increase emergency lending and ordering them to provide more security for existing emergency loans.

Eurozone finance ministers will meet in Brussels later on Tuesday before a full summit of eurozone leaders. Tsipras may be prepared to accept many of the demands made by Greece's creditors.

But - emboldened by his resounding win in the referendum - 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 ECB said it would keep emergency cash support for Greek banks, which are running out of funds and on the verge of collapse, at the same level - refusing requests for additional support.

It told the banks to lodge more collateral - or assets - with the Bank of Greece, reducing the amount of spare cash the banks have.se fear to put pressure on Greeks.

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