Euro Zone Debt Crisis

The move came after the Greek parliament approved another round of spending cuts and tax increases demanded by international creditors.

Greece's euro zone creditors, notably Germany, have ruled out a writedown but are willing to consider other forms of restructuring such as a lengthening maturities.

The deal, which came after 23 hours of talks that continued through the night, must still be adopted by Greece's parliament and by euro zone countries.

The updated debt sustainability analysis (DSA) was sent to euro zone governments late on Monday, hours after Athens and its 18 partners agreed in principle to open negotiations on a third bailout programme of up to 86 billion euros in return for tougher austerity measures and structural reforms.

If Greece meets the conditions, the German parliament would meet on Thursday to mandate Merkel and Finance Minister Wolfgang Schaeuble to open the talks on a new loan.

A senior EU source said such a temporary exit from the euro was illegal and would not survive in the summit statement.

French President Francois Hollande said the European Central Bank would ensure that Greek banks had the minimum necessary liquidity to stay afloat until Sunday.

German Chancellor Angela Merkel and French President Francois Hollande, the euro zone's most powerful leaders, said Athens must move quickly if it wants to secure a cash-for-reform deal with creditors and avoid crashing out of the single currency.

Greece overwhelmingly rejected conditions of a rescue package from creditors on Sunday, throwing the future of the country's euro zone membership into further doubt and deepening a standoff with lenders.

As the clock ticked down on Tuesday towards midnight, when billions of euros in locked-up bailout funds are due to expire, euro zone finance ministers called a conference call (1700 GMT) to discuss the Greek request.

Greece is staring at the possibility of being shunted out of the euro zone as it is likely to default on its debt payment to IMF or the International Monetary Fund.

Euro zone stocks remained well ahead of where they were at the start of the year before the European Central Bank (ECB) started printing money, and while government borrowing costs shot up in Europe's indebted southern countries - Italy, Spain and Portugal - they remained well below the heights scaled at the peak of the crisis in 2011/2012.

The fuse may be lit for a Greek exit from the euro zone but the fallout in the United States is expected to be modest and not enough to throw the Federal Reserve's likely September rate hike off course, said former Fed officials and outside analysts watching the latest turn in Greece's crisis.

Greece is staring at the possibility of being shunted out of the euro zone as it is likely to default on its debt payment to IMF or the International Monetary Fund.

Expecting capital control measures by Greece, Thomas Cook had already warned its customers visiting Greece in advance to carry sufficient cash, said Mr Menon.

The move came after the Greek parliament approved another round of spending cuts and tax increases demanded by international creditors.

Greece's euro zone creditors, notably Germany, have ruled out a writedown but are willing to consider other forms of restructuring such as a lengthening maturities.

The deal, which came after 23 hours of talks that continued through the night, must still be adopted by Greece's parliament and by euro zone countries.

The updated debt sustainability analysis (DSA) was sent to euro zone governments late on Monday, hours after Athens and its 18 partners agreed in principle to open negotiations on a third bailout programme of up to 86 billion euros in return for tougher austerity measures and structural reforms.

If Greece meets the conditions, the German parliament would meet on Thursday to mandate Merkel and Finance Minister Wolfgang Schaeuble to open the talks on a new loan.

A senior EU source said such a temporary exit from the euro was illegal and would not survive in the summit statement.

French President Francois Hollande said the European Central Bank would ensure that Greek banks had the minimum necessary liquidity to stay afloat until Sunday.

German Chancellor Angela Merkel and French President Francois Hollande, the euro zone's most powerful leaders, said Athens must move quickly if it wants to secure a cash-for-reform deal with creditors and avoid crashing out of the single currency.

Greece overwhelmingly rejected conditions of a rescue package from creditors on Sunday, throwing the future of the country's euro zone membership into further doubt and deepening a standoff with lenders.

As the clock ticked down on Tuesday towards midnight, when billions of euros in locked-up bailout funds are due to expire, euro zone finance ministers called a conference call (1700 GMT) to discuss the Greek request.

Greece is staring at the possibility of being shunted out of the euro zone as it is likely to default on its debt payment to IMF or the International Monetary Fund.

Euro zone stocks remained well ahead of where they were at the start of the year before the European Central Bank (ECB) started printing money, and while government borrowing costs shot up in Europe's indebted southern countries - Italy, Spain and Portugal - they remained well below the heights scaled at the peak of the crisis in 2011/2012.

The fuse may be lit for a Greek exit from the euro zone but the fallout in the United States is expected to be modest and not enough to throw the Federal Reserve's likely September rate hike off course, said former Fed officials and outside analysts watching the latest turn in Greece's crisis.

Greece is staring at the possibility of being shunted out of the euro zone as it is likely to default on its debt payment to IMF or the International Monetary Fund.

Expecting capital control measures by Greece, Thomas Cook had already warned its customers visiting Greece in advance to carry sufficient cash, said Mr Menon.