Greece confirms loan extension request

Greece will ask the eurozone for a six-month extension of its European loan agreement on Wednesday, a Greek government official has confirmed.

The loan would not be an extension of the current bailout agreement, which includes strict austerity measures.

On Monday night, Greece rejected a plan to extend its €240bn (£178bn) bailout, describing it as "absurd".

Greece is likely to run out of money if a deal is not reached before the end of February.

"We should extend the credit programme by a few months to have enough stability so that we can negotiate a new agreement between Greece and Europe," Greek Finance Minister Yanis Varoufakis told Germany's ZDF.

Government spokesman Gabriel Sakellaridis confirmed that meant Mr Varoufakis would be asking for a six-month extension to Greece's current loan agreement.

Mr Sakellaridis told Greece's Antenna TV: "Let's wait today for the request for an extension of the loan contract to be submitted by Finance Minister Varoufakis.

"All along deliberations are going on to find common ground, we want to believe that we are on a good path. We are coming to the table to find a solution."

But he added the Greek government would not back down on issues that it considered non-negotiable.

German Finance Minister Wolfgang Schaeuble dismissed the Greek proposal, telling broadcaster ZDF on Tuesday evening: "It's not about extending a credit programme but about whether this bailout programme will be fulfilled, yes or no."