Eurozone finance ministers have rejected a request by Greece to extend the deadline of its bailout programme until after a planned July 5 referendum.

The Greek finance minister walked out of an EU finance ministers' meeting this afternoon after the ministers decided that there was no basis for an extension of the programme now because there was no basis for cooperation.

Many among the 19 eurozone ministers said that they were surprised and disappointed by the announcement of Prime Minister Alexis Tsipras to seek a referendum on the creditors' latest proposal for a bailout.

Prime Minister Joseph Muscat said the decision by Greece was irresponsible. He said the Maltese banks had no exposure to Greek banks and the Maltese people had nothing to worry about.

Listen to his comments here.

The Greek parliament  will vote on the referendum later today.

The proposal is made up of two documents - one called Reforms For The Completion Of The Current Programme And Beyond and another called Preliminary Debt Sustainability Analysis.

Aside from the issue of making these documents accessible to all voters, the parliament must also deal with the possibility of creditors withdrawing those proposals.

Finance Minister Edward Scicluna said at the end of the finance ministers' meeting that the group had reaffirmed that Greece is still in the eurozone and will be up to the Greek people to decide otherwise.

What will happen at end of the month is that the arrangement that Greece has with its partners will end and the last tranche of bailout money will not be released.

It an IMF loan isnot  repaid by 6pm Washington time on Tuesday, Greece will technically be in default.

While the situation means that Greece will run out of money, Prof Scicluna said the Eurozone has an array of instruments to stop contagion.

He said the EU will not, at least in the foreseeable future, be calling in guarantees on Greek loans, even in the worst case scenario of Greece leaving the eurozone.

He said the ministers had agreed to provide social assistance to the Greek people if the situation in the country deteriorates.

GREEKS WITHDRAW CASH 

Across Athens, people started flocking to cash machines shortly after Mr Tsipras announced the referendum, just after 1am local time. The length of queues at cash machines, and the availability of cash, varies widely. The Bank of Greece promised that the flow of cash to ATMs will not be interrupted.

The Greek government said it would recommend Greeks vote "no" in the referendum. What would happen in that case - whether Greece would have to leave the euro or try to renegotiate more time with creditors - is unclear.

Former prime minister Costas Karamanlis broke a long-standing silence and severely criticised the government's "foolish choice".

"The nation's most vital interests demand that the country remains at the heart of Europe. The EU's actual shortcomings do not, in any way, negate this ..." Mr Karamanlis said.

"Foolish choices that undermine this principle push the country to adventures, with unpredictable and possibly irreversible consequences," he added.

Panagiotis Lafazanis, a senior Syriza minister overseeing the energy sector, environment and agriculture, came out strongly against approving the creditors' proposal.

"A 'No' will provide a big respite for Greece and the Greek people," he said as he arrived at the Parliament. "It will be a big yes to a new era of reconstruction and progress."

The head of the International Monetary Fund said that Greece's creditors "will continue to work" for a deal to save the country.

Christine Lagarde said that the creditors "always showed flexibility to adjust to the new political and economic situation in Greece," thus rejecting claims from Mr Tsipras that his country was facing an ultimatum.

But Ms Lagarde insisted Greece needs to do more. "It requires a balanced approach, on the one hand there has to be structural reforms, deep ones, to change the Greek economy, to make it more productive, more efficient so that it generates growth and jobs," she said.

Once that is done, "it requires financial support" from the international partners, she added.