Roundup: Greek lawmakers start debate on debt deal referendum amid fears of imminent default

Greece's parliament started on Saturday noon an emergency debate on the government's surprise call for a July 5 referendum on the debt deal international creditors put on the table in a bid to avert a Greek default and possible Grexit in coming weeks.

After a dramatic twist and a televised address by Prime Minister Alexis Tsipras in the early hours of Saturday, lawmakers convened to vote around midnight amidst strong mixed reactions nationwide and mounting fears of a possible imposition of capital controls and a credit event within the next few days.

According to an announcement on the parliament's website on Saturday morning following the decision the Leftist cabinet made last night, Greek people are called to decide whether they approve or not lenders' agreement proposal for a reform-for-cash deal as tabled at Thursday's Eurogroup meeting in Brussels.

The terms used by the government left no doubt on their stance after five months of fruitless deliberations with creditors on the conditions of the disbursement of further aid to Greece, as the crucial June 30 deadline neared.

Tsipras and several ministers have clearly called on Greek people to vote down the institutions' offer which they rejected as recessionary, unreasonable, counterproductive and humiliating.

Opposition parties, media, analysts and citizens were deeply divided on Saturday.

A part of Greek society supported Tsipras' initiative as a strong tool to add some pressure on lenders and force them into concessions under the fear of a domino effect across the euro zone and global economy from a Greek financial meltdown.

Another part blasted the choice as an irresponsible step to the country's destruction, arguing that no matter what will be the wording of the question printed on ballots on July 5, essentially it could turn into a risky referendum in favor or against Greece's stay in the euro zone.

Panos Kammenos, the defense minister and leader of the Right-wing Independent Greeks party, the junior government coalition partner of Tsipras, insisted in statements to Greek media on Saturday that Greece's membership in the euro zone and the EU was not at stake.

He claimed that the referendum call represented a last moment opportunity for lenders to accept the realistic Greek proposal to break the deadlock and resolve the Greek debt issue.

In his televised message the Greek leader said that Greece would formally request on Saturday the extension of the bailout by a few days so that Greek voters can decide on the country's future course with no pressure.

His critics argued that the referendum if conducted will most likely take place with closed banks and the country a breath from bankruptcy and Grexit.

Opponents of the referendum idea and the government's overall negotiating tactics forecast that on June 30 Greece could be left to stand on its own with no bailout program unable to repay a loan installment to the International Monetary Fund.

They expressed doubts whether the Eurogroup which was scheduled to convene later on Saturday afternoon would eventually discuss the draft deal or would rather withdraw the offer and examine a Plan B for Greece, as media reported, citing European sources on Saturday.

In such a case the question of the Greek referendum would be pointless with no draft deal on the table, they noted, as Constitutional Law experts such as Professor of the University of Athens Athanassios Xiros also raised questions on the legality of the referendum, since the Greek constitution does not allow the conduction of referendums on fiscal issues.

Tsipras' critics doubted whether creditors would facilitate Greece with an extension of the bailout for a few days and keep injecting capital to the banking system to deal with a looming bank run.

Since the early hours of Saturday depositors have been queuing in front of ATMs, gas stations and super markets across the country.

Government spokesman Gavriil Sakellaridis told media that Tsipras held a telephone contact with European Central Bank head Mario Draghi on Saturday morning and won reassurances that ECB respects the decision to call a referendum.

Meanwhile, main opposition conservative New Democracy party leader and former prime minister Antonis Samaras accused the government of leading Greece to an impasse and rolling over the responsibility of the decision on the shoulders of people.

Samaras, as well as other party leaders, warned for the heavy cost of the referendum for the country.

Socialist PASOK party chief Fofi Gennimata called for Tsipras' resignation and call for snap general elections instead of a referendum, while centrist Potami (River) party head Stavros Theodorakis accused Tsipras and Kammenos of leading the drachma lobby.

Even former prime minister George Papandreou who suggested a referendum in late 2011, faced a strong backlash domestically and abroad and was forced to step down, strongly criticized Tsipras on Saturday.

Papandreou stated that the conditions today were far worse than in 2011 and the outcome more dangerous.

According to recent opinion surveys, six out of 10 Greeks support stay within the euro zone no matter how painful the terms will be, while the rest opted for an "heroic" Grexit rather than a bad agreement that traps the economy and society in the vicious circle of recession.

The front pages of Greek newspapers also reflected the division of Greek society on Saturday.

"Memorandum? Forget it" read the pro-government Avgi (Dawn). "They want to turn us into a colony," added Efimerida ton Syntakton (Editors' Daily).

"At the razor edge," read Ethnos (Nation), "Rift selection with referendum," said Kathimerini (Daily), "Bomb with referendum" added Naftemporiki (Shipping Industry News). Endit