Greek debt-deal News

In Brussels, a sense of stupor prevails. The decision comes at the worst moment, in the final stage of negotiations when "98-99 percent" of the deal had already been agreed, according to a participant in the talks.

European Union heads have called on Greece`s leftist government to present new reform and budget proposals, with Greek minister of state Alekos Flambouraris saying Saturday Athens could propose re-worked measures.

In the global economy, "a very strong" euro would make it difficult for countries such as Spain and Portugal, which adopted significant reforms during the economic crisis, to "harvest the fruits of those reforms, in exports, for example," Merkel told a congress for family-run businesses in Berlin.

Greece needs to clinch a deal to unlock 7.2 billion euros in bailout funds by the end of June before its current EU-IMF rescue programme expires, leaving the cash-strapped country with no means of support against a looming default.

Athens shares leapt 5.47 percent at open on Thursday, boosted by hopes that Greece could be close to a deal with its creditors on a rescue deal.

The German chancellor confirmed her intention to meet again with Greek Prime Minister Alexis Tsipras in Brussels on June 17 under the auspices of the EU summit meeting with the Community of Latin American and Caribbean States, or CELAC.

The official added that Athens was still waiting for Greece`s creditors to respond to its own recent proposal for a deal to end the months-long impasse.

"The Greek authorities have informed the (IMF) today that they plan to bundle the country`s four June payments into one, which is now due on June 30," IMF spokesman Gerry Rice said, citing rules allowing debtor countries to regroup "multiple principal payments falling due in a calendar month."

Tokyo fell 0.44 percent by lunch, Hong Kong lost 0.20 percent and Seoul gave back 0.38 percent, but Sydney was flat and Shanghai rose 1.54 percent.

"It is not a take-it-or-leave-it document but an initiative to accelerate talks as the timing to get a deal in time for the end of the month is getting tight," a European source close to the negotiations told AFP.