Greece could suspend referendum: European source

Greece said it could suspend its bailout referendum if talks restart with European creditors on a new rescue programme, a European source close to the negotiations said Tuesday.

In a telephone conference of eurozone finance ministers, other countries asked Greek counterpart Yanis Varoufakis how their new proposal for a two-year aid package would be linked to the controversial referendum for Sunday announced by Prime Minister Alexis Tsipras.

"In response he said there was a willingness to take a look at the question in the referendum or update the referendum or suspend it," the source told AFP on condition of anonymity.

"All that depended on the signal the Eurogroup would give to this new proposal."

Malta's Prime Minister Joseph Muscat reportedly also told parliament on Tuesday that Greece had offered to suspend the referendum if talks with the EU are reopened.

German newspaper Die Welt likewise reported Greece's offer, saying Varoufakis had told his Eurogroup counterparts that Athens was ready to suspend the vote "if his finance colleagues ... agree with him".

Greece had earlier made the last-minute suggestion for a new bailout programme and an extension of its current programme which expires at 2200 GMT Tuesday, the same time as it is set to default on an IMF loan.

The Eurogroup rejected the extension call but said it would discuss a new bailout on Wednesday at 0930 GMT.

Tsipras plunged talks with creditors into chaos when he announced a referendum for Sunday on whether to accept bailout reform plans that he said would humiliate the country.