Update 3 | Tsipras: No vote doesn't mean euro exit

Greek Prime Minister Alexis Tsipras says referendum result not connected to whether Greece will remain in euro

The Greek Prime Minister today confirmed that the referendum will be held on Sunday and urged the Greek people to vote no.

In an address to the nation on live TV, Tsipras said “after our proposal for a referendum better proposals have been put on the table,” adding “I never expected a democratic Europe not to give space and time to hold the referendum. It is a disgrace that we have these scenes of shame because they closed the banks precisely because we wanted to give the people the vote.”

“No does not mean rupture with Europe but return to a Europe with values,” he stressed.

His appearence followed the Greek government's statement in which it denied reports that it had fully accepted the institutions’ proposals.

Earlier, media reports said that Greece's Prime Minister Alexis Tsipras has offered new concessions to the country's creditors.

A letter to creditors obtained by the Financial Times says Tsipras is prepared to accept most conditions that were on the table before talks collapsed and he called a referendum.

But German finance minister Wolfgang Schauble was quick to pour cold water on any hopes for an agreement by saying that he had not even read Athens' latest proposals, stressing that a deal would not be struck before Sunday's referendum.

“This (Greek) government has done nothing since it came into office,” Schaeuble said in a speech in the lower house of parliament.

Earlier, the Greek government issued a statement in which it denied that it accepted the creditors' terms, explaining that "reports that say the Greek government has fully accepted the institutions’ proposal do not stand.”

The new proposal was an attempt to find a mutually beneficial agreement that not only gave emphasis to growth but making the country’s monumental debt load viable, the government insisted.

“Several measures that the institutions are suggesting will not be enforced immediately but in stages so that the government can find equivalent measures to replace them,” it said.

On Tuesday, eurozone finance ministers refused to extend the previous bailout.

Greece became the first European Union country to fail to repay a loan to the International Monetary Fund.

The Financial Times says that Tsipras was prepared to accept a deal made by creditors over the weekend, if a few changes were agreed.

The FT says a letter sent by Tsipras to creditors asked for only two changes: that a VAT discount to Greek islands is maintained, and that the process of raising the retirement age to 67 begins in October and not immediately.

Greece's national broadcaster ERT says Tspiras would accept a deal with only minor requests for changes.

Two key meetings are to take place to discuss aid for Greece, hours after Athens missed the deadline for a €1.5bn payment to the IMF.

In one, officials with the European Central Bank will decide whether to grant an emergency loan to Greece.

In the second, eurozone finance ministers will discuss Greece's latest proposal for a third bailout. It would last two years and amount to €29.1bn.

Ministers will discuss the proposal in a conference call later this afternoon.