Greek PM Alexis Tsipras prepared to present proposals to creditors

ATHENS, Greece, July 7 (UPI) -- Greek Prime Minister Alexis Tsipras is prepared to present new proposals to international creditors as to avoid defaulting further on the country's $356 billion debt.

The plan reportedly includes demands for the Greek debt to be cut by up to 30 percent, according to BBC News. Banks will remain closed on Tuesday and Wednesday.

Greece outright rejected the austerity demands by international creditors as to release billions in loans to the country.

In the referendum held Sunday, the Greek people were asked if they accepted the terms of an international bailout submitted by the European Commission, the International Monetary Fund and the European Central Bank -- 61 percent of Greek participants voted "no."

The creditors reacted differently to the referendum. If a deal is not reached, Greece could be removed from the Eurozone economic bloc.

The European Central Bank maintained its about $97 billion cap on emergency liquidity assistance (ELA) for Greece but is treating treating government bonds, used as collateral, as riskier and taking that into account when calculating how much liquidity it can provide. Banks may find it more difficult to qualify for ELA.

European Commission Vice President Valdis Dombrovsk said the vote of "no" is "neither legally nor factually correct," also adding that the Commission will not negotiate with the Greek government until it receives a mandate from the Eurozone's finance ministers who meet Tuesday.

Christine Lagarde, head of the IMF, said in a statement that her organization "has taken note of yesterday's referendum held in Greece. We are monitoring the situation closely and stand ready to assist Greece if requested to do so."

The leaders of the majority of Greek political parties released a joint statement, insisting that the country stay in the eurozone.

"The recent verdict of the Greek people is not a mandate for rupture, but a mandate to continue and strengthen the effort to reach a socially fair and economically viable deal," the statement said.

On June 30, Greece became the first developed nation in history to default on a loan from the IMF.

Needing to pay a $1.7 billion payment to the International Monetary Fund by the end of June, but not having the cash to do so, Athens engaged in numerous negotiations over the last four months -- hoping to strike a deal to unlock the remainder of $7 billion in relief cash previously granted by the organization.