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Broke, unstable and exporting terror, yet Pakistan keeps getting billions in global aid. Here is the shocking truth behind the West's selective morality and how the loan game is used to prop up a rogue nuclear nation.

Europe`s failure to solve the Greek debt crisis risks lasting damage to the post-war dream of "ever closer union" at a time when it faces new threats on its borders, analysts said.

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.

But after they were blindsided by Tsipras`s surprise middle-of-the-night announcement that he rejected their offer and would put it to voters only after Tuesday`s deadline, several said all that remained to discuss was "Plan B" - how to limit the damage.

Greece wants to continue negotiations for a cash-for-reforms deal with its creditors based on the proposals it has submitted, which the government believes are the best basis for talks, a Greek government official said on Saturday.

The gambit by Tsipras heightened anxiety over a possible Greek default next Tuesday that could potentially push Greece towards an exit of the eurozone and risk throwing the European Union project as a whole into crisis.

The goal is to bridge the gap between the leftist Greek government and its EU-IMF creditors over the economic and budgetary reforms Athens needs to commit to in order to unblock the last tranche of 7.2 billion euros in the country`s second international bailout since 2010.

Greece`s Finance Minister Yanis Varoufakis said German Chancellor Angela Merkel must make a clear decision at a eurozone summit Monday on whether to negotiate a rescue deal with Athens or heed populist calls to jettison the debt-wracked country.

EU President Donald Tusk called a summit of the leaders of the 19 eurozone countries on Monday in Brussels after the Eurogroup meeting on Thursday failed to break a five-month-old deadlock between the government in Athens and its EU-IMF creditors.

Greece has until June 30 to agree a reform deal in order to secure the remaining portion of its multi-billion-euro bailout, which it needs to avoid defaulting on a debt payment of around 1.5 billion euros to the International Monetary Fund.

"European equities are trading moderately lower this morning after yesterday`s rally had come to an abrupt halt on the back of reports that the IMF has halted negotiations with Greece due to a lack of progress," said analyst Markus Huber at brokerage Peregrine & Black.

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.

Greece`s bailout agreement with its creditors expires at the end of June. Should Athens miss its loan payments and default, many fear this would set off a chain of events that could lead to a messy Greek exit from the euro.

"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.

Spot gold was steady at $1,190.25 an ounce by 0322 GMT after earlier climbing to a session peak of $1,196.35, its highest since May 26.

The delay in reaching an agreement has led to concerns Athens is running critically short of cash and may soon end up defaulting, which could set off a messy exit from the euro.

Athens faces several payments totaling about 1.5 bn euros to the IMF next month and it is in talks with the European Union and the International Monetary in order to clinch a cash-for-reforms deal before it runs out of cash.

There was relief at the start of the week when it emerged Athens had managed to pay 750 million euros due to the IMF.