(VOVworld) - Greece has submitted a new proposal to its international creditors in a last-ditch attempt to keep from defaulting on its IMF debt payment, which falls due on Tuesday.

Greek Prime Minister Alexis Tsipras  gives an interview to Greece`s state television ERT on Monday night, in Athens, Greece, 29 June 2015. (Photo: EPA)

The Greek government announced that it proposed a two-year deal with the European Stability Mechanism (ESM) to fully cover its financial needs with parallel debt restructuring. The government said any agreement needs to allow Greece to keep a 30 percent VAT discount and postpone pension reform until October.

On Wednesday, the German parliament discussed the Greek debt crisis, and most participants supported Greece staying in the eurozone. German Chancellor Angela Merkel said negotiations on Greece’s debt may continue after a referendum in Germany on reform requirements. But she said all must wait for the result of a referendum in Greece on Sunday.