"There was a willingness to take a look at the question in the referendum or update the referendum or suspend it," an EU source told AFP after talks between Greek Finance Minister Yanis Varoufakis and his eurozone counterparts.

"All that depended on the signal the Eurogroup would give to this new proposal."

Greece has entered uncharted waters without international aid for the first time in five years, sparking fears of a chaotic eurozone exit which could have untold repercussions for global markets and the EU.

The ongoing uncertainty hit European stocks and the single currency. In Asian trade today, the euro treaded water, buying USD 1.1140 compared to USD 1.1139 in New York late.

On the streets of Athens, some 20,000 people turned out to show their support for a bailout deal after banks were closed this week amid the spiralling debt crisis, forcing people to queue for hours for cash.

An IMF spokesman in Washington confirmed the payment due by 2200 GMT yesterday had "not been received," making Greece the first country to default to the Washington-based lender since Zimbabwe in 2001 and the wealthiest ever.

"We have informed our Executive Board that Greece is now in arrears and can only receive IMF financing once the arrears are cleared," Gerry Rice said in a statement.

The IMF is now considering extending Greece's payment deadline something it has only done twice before in 1982 for Nicaragua and Guyana -- giving it the power to ease pressure on Athens as it starts fresh talks with the EU.

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