UPDATE: Greece in crisis: EU ministers refuse Greece's bailout extension

UPDATED 29 July 1pm: Greece in crisis: Banks stay shut until next week – ATM withdrawal limit imposed

UPDATED 29 June 9am: Greece closes banks as financial crisis escalates

UPDATE Sunday:  Eurozone leaders have refused to extend Greece's bailout package.

This comes after Greek Prime Minister Alexis Tsipras shocked the world by calling for a referendum yesterday, saying it should be the Greek people to decide if they should adopt the austerity measures necessary to receive more bailout aid.

In the first emergency meeting of eurozone finance ministers in half a decade, the negotiations turned into a crisis planning session. Mr Tsipras and Greece's finance minister reportedly stormed out of the meeting after the talks shifted to how to quarantine Greece, insulating it from the rest of Europe to prevent further economic damage.  

It remains unclear at this stage if the expiry of the bailout, which occurs on Tuesday, means the emergency financial assistance which is keeping Greece afloat will continue.      

EARLIER: Greek prime minister Alexis Tsipras has rejected an "unbearable" bailout plan, setting a snap election on whether the country should adopt more austerity measures.

The Greek people will go to the polls on July 5 after a week of negotiations with its creditors ended without a bailout deal.

In a shocking move, Mr Tsipras says the people of Greece will be the ones to decide the future of the embattled nation. Next week, the Greek people will be asked whether the country should bow to the conditions its creditors have demanded. 

The Greek people will be asked to vote on whether further austerity measures should be adopted. Provisions included cuts to pensions and a rise on value-added taxes.  

German Chancellor Angela Merkel reportedly pleaded with the Greek prime minister to accept what she outlined as a "very generous offer," which demands almost €4 billion through raised taxes and pension reforms in 2016.   

But Mr Tsipras expressed his displeasure with the bailout plan, calling it a "humiliation" in a television address yesterday. 

 "I call on you to decide - with sovereignty and dignity as Greek history demands - whether we should accept the extortionate ultimatum that calls for strict and humiliating austerity without end, and without the prospect of ever standing on our own two feet, socially and financially," he said.

He added that the Greek people must make the decision free of any "blackmail."

Mr Tsipras has expressed his frustration after his bailout proposals were not accepted this week. 

His proposal included a new tax on business and on the wealthy, and an increase to VAT (equivalent to GST) on selected items. This was rejected by the creditors  who called for stricter reforms within the embattled nation.

The snap election will occur after the IMF payment deadline falls on Tuesday this week meaning Mr Tsipras needs a extension on the deadline. 

The extension requires a unanimous decision by all 19 eurozone finance ministers, as well as parliamentary votes in some countries; which is unlikely. 

The Netherlands' deputy finance minister Eric Wiebes says he sees no reason to extend the deadline; "A deadline is a deadline," he says.