Greek Prime Minister Alexis Tsipras has informed his country's creditors of his willingness to agree to most, if not all, their demands as Greece failed to repay its loan to the International Monetary Fund (IMF) due on Tuesday.

The Sydney Morning Herald reported that Greece is the first western country that has failed to meet its IMF loan obligation.

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Initially, Tsipras appealed for reconsideration both in time and credit terms, but this was rejected by the EU finance board, according to the BBC.

Even if the Greek government has acceded to the demands, it must first conduct a nationwide referendum asking its citizens if they are willing to agree to the terms of their creditors.

BBC reported that Angela Merkel, Germany's chancellor, insists that the renegotiation of Greece's debt will only push through after the referendum which will be conducted on July 5.

Nevertheless, stock markets across Europe were delighted about the possibility that the Greece debt crisis will be resolved soon.

Some of the terms put forward by the creditor countries include the revision of its value added tax (VAT) rules and rates, a massive cut in pensions and a reduced budget for the country's military.

Greek citizens are beginning to feel the effects of their country's failure to meet its financial obligation to its creditors.

ATM machines in Greece are automatically restricted to dispense up to 60 Euros to each person daily. Pensioners were only allowed a one-time withdrawal of 120 Euros for the week. Reports indicate that lines have grown so long that many people have been instructed to return the following day. Several hundred pensioners held a rally complaining that they only received a fraction of the promised 120 Euros.

It does not help that many of the European leaders reportedly do not like the Greek Prime Minister. The referendum was Tsipras' idea and his European counterparts were surprised and angered when he made the announcement.

The Greek leader is well aware that if his countrymen reject the terms of the loan bailout, Greece may find itself evicted from the European Union. Public opinion in Greece showed that half of the voters will vote "no" in the referendum.

TagsGreece debt crisis, IMF, Eurozone, Alexis Tsipras, angela merkel, Greek debt deal, Greek pension, EU finance ministers