By Andrew Rosenbaum and Magda Panoutsopoulos

ANKARA 

Greece on Tuesday offered a fresh bailout proposal, the prime minister’s office said, in an apparent bid to stave off debt default.

The new offer, which came just hours before the deadline for Greece to repay 1.6 billion euros ($1.8 billion) to the International Monetary Fund (IMF), consists of a two-year deal for debt restructuring as well as financial coverage of the country's budgetary needs.

The deal would be made within the European Stability Mechanism - a fund set up by the EU to manage member state’s financial issues - and would free up funds to repay the IMF.

Separately, Greece’s chief negotiator Euclid Tsakalotos told the Greek media on Tuesday that the proposed referendum on the bailout, to be held on Sunday, could be cancelled if a deal is struck late Tuesday.