Greece submits bailout proposal

Greek prime minister Alexis Tsipras has submitted detailed proposals for economic reform in the hope of persuading creditors to agree a fresh bailout.

Punishing tax rises and spending cuts are being offered in return for a financial lifeline of 53.5 billion euro (£38 billion) to prop up the country's failing banking system.

Athens has drawn up the plans in an attempt to secure its formal request for a bailout through the European Stability Mechanism (ESM).

Swift action needed

Greece's new finance minister Euclid Tsakalotos stressed the urgency of the loan request "given the fragility of our banking system", the lack of liquidity and the country's forthcoming obligations.

Requesting a three-year long ESM programme of support, he highlighted Greece's "commitment to remain a member of the eurozone and to respect the rules and regulations as a member state".

The country needs swift action to avoid bankruptcy and the possibility of crashing out of the euro.

Mr Tsipras has pleaded for a resolution to his country's debt crisis that would offer "light at the end of the tunnel" after more than five years of austerity.

Finance officials from the European institutions and the International Monetary Fund (IMF) are due to assess the proposals today and Greece's parliament will vote on them tonight.

Emergency summit

Eurozone finance ministers will discuss the proposals in Brussels tomorrow before Prime Minister David Cameron and fellow leaders hold an emergency summit involving all 28 European Union members on Sunday.

Downing Street said the eurozone had to work with Greece to find a way out of the crisis.

Bank closures in Greece have been extended until Monday and Greeks are limited to withdrawing just 60 euro (£43) per day after the imposition of capital controls.

British tourists have been warned to take sufficient cash to cover expected costs and emergencies and to ensure they have supplies of their usual prescription medicines in case of shortages.