German chancellor Angela Merkel warned Mr Tsipras he was dancing close to the financial abyss.
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Merkel said she was “not exaggeratedly optimistic” for a solution.
All 28 European Union leaders will then examine the plans on Sunday in a make-or-break summit that will either rescue Greece’s moribund economy, or leave it to crash out of the single currency – a so-called “Grexit“.
Over 60 per cent of Greeks voted in the referendum against an austerity plan demanded by the country’s creditors.
Greek Prime Minister Alexis Tsipras called in a speech to the European Parliament for a fair deal, acknowledging Greece’s historic responsibility for its plight, after EU leaders gave him five days to come up with convincing reforms.
The Greek leader declared that he was not seeking a “rupture” with Europe but rather a “socially just and economically viable agreement without the mistakes of the past, that caused a recessionary spiral”. “The process will be extremely fast”.
Late on Tuesday, Tsipras made it clear that he had gotten the message that there wasn’t a moment to waste as his country nears deadlines for debt payments that it can not afford. Instead, his government said it would only present a plan on Wednesday.
If the European Commission, the global Monetary Fund and the European Central Bank approve, Eurogroup finance ministers will meet on Saturday to recommend opening negotiations on a conditional assistance programme.
Such assurances were needed, said Lew, for Tsipras to receive domestic backing for a deal.
Christian Noyer told Europe-1 radio that the European Central Bank has been supporting Greek banks for months, but that there is a limit to its support.
European officials remain split on Greece’s demand for easier debt repayment – with lead eurozone lender Germany still reluctant.
Tsipras is expected to call for debt relief to cut Greece’s massive 320 billion euro ($350 billion) debt mountain but that is a red line in many European capitals, especially in Berlin and the newer eastern members of the eurozone.
People familiar with Greece’s financial system said the banks could start running out of money within two days unless they received more liquidity. Louis away in a BBQ to find agreements may lead to the bumper to Greece… and they thought and still be thinking of them… and for show…it could be most grateful for the Greek people…
Some of Athens’ 18 partners in Europe’s common currency expressed exasperation at five years of crisis wrangling with Greece.
Assuming formal negotiations can begin, it’s far from clear that the two sides will be able to agree terms for a bailout, which would be Greece’s third since 2010.
Spanish Prime Minister Mariano Rajoy is using a musical metaphor to describe a seeming change of approach by the Greek government as it tries to convince creditors to lend it money soon.
“I have the strong impression there were 18… ministers of finance who felt the urgency of the situation and there is one… who doesn’t feel the urgency of the situation”, Belgian Finance Minister Johan Van Overtveldt said.
The head of a conservative group in the Parliament, Belgium’s Guy Verhofstadt, said he was “furious” at Tsipras failure to spell out specifics of his reform plans.
The Greek government asked for a three-year loan programme from the European Stability Mechanism (ESM), which is guaranteed by the 19 member states of the eurozone bloc, insisting it was finally ready to implement major economic reforms.
The fallout from the debt crisis has hit Greece’s vital tourist industry, which has seen last-minute reservations plunge 30 percent, the Greek Tourism Confederation said.
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– The European Central Bank (ECB) maintains a crucial cash lifeline to Greek banks but with tougher conditions.
