Greek parliament voted ‘yes’ on Sunday by an overwhelming majority to hold a referendum to decide on the country’s bailout in association to terms and conditions established by its international creditors.
The complexity of the dynamics behind the referendum and the official wording of its precise nature has yet to been worked out by the parliamentarians.
Greece will hold the referendum on July 5 over the bailout terms that are imposed by its Western lenders, including the European Central Bank (ECB), the EU Commission and the International Monetary Fund (IMF),
The referendum was proposed by the Greek Prime Minister Alexis Tsipras during a late Friday address to the Greek nation.
"The people must decide free of any blackmail...the referendum will take place on July 5," Tsipras said in a televised address to his people.
The Eurozone rejected on Saturday Greece’s request to extend its bailout programme for one month, closing the door on chances of a deal to save the debt-torn country from default.
“The [bailout] programme will expire on Tuesday night. That is the latest stage we could have reached an agreement,” said Jeroen Dijsselbloem, the Dutch finance minister who chaired the Eurozone meeting.
Athens says it cannot afford the $1.8 billion amount which has to be paid to the IMF by the June 30 deadline.
Greece is heavily indebted to the EU and the IMF, almost 240 billion euros, since the Eurozone economic crisis seriously hit the country’s economy from 2009 to the present.
Athens has been negotiating with the IMF and the ECB, over the past four months about the release of some 7.2 billion euros in aid.