Greece’s left-wing government plans to ask the country’s citizens on Sunday whether to accept or reject the demands of its creditors for extended bailout funding needed to avert a default.

As Reuters reported on Monday, Greeks will have to answer by ‘No’ or ‘Yes’ to the following question in a referendum on 5 July: "Should the proposal that was submitted by the European Commission, the European Central Bank and the International Monetary Fund at the Eurogroup of June 25, 2015, which consists of two parts that together constitute their comprehensive proposal, be accepted?"

While the government in Athens has called on Greeks to vote ‘No’, as it expects this answer will strengthen its position in negotiations with international lenders, eurozone leaders have made it clear a ‘No’ will mean Greeks want their country to exit the eurozone.

European Commission President Jean-Claude Juncker on Monday urged Greeks to vote ‘Yes’ in the bailout referendum, adding the reform proposals rejected by the Greek government  last week were "a demanding and comprehensive package but a fair one".

A ‘Yes’ vote will mean Greeks  are accepting a deal that will allow their country to get its bailout money - in exchange for economic reforms and austerity measures. A ‘No’ vote will mean the Greek government will have to find a way to go it alone - and likely default on its debt obligations soon afterwards.

Eurogroup chairman Jeroen Dijsselbloem said on Monday the door remains open for Greece despite the breakdown of bailout talks over the weekend, but “the possibilities and time are very limited."

Greece looks increasingly likely to default on an IMF debt payment of some EUR 1.6 B due on Tuesday following the breakdown of debt talks with creditors on Saturday – a development that could become the first step on a path that could ultimately lead the country to falling out of the euro.

And Italian Prime Minister Matteo Renzi said that Greeks will have to decide on Sunday whether their country will remain in the eurozone.  

"The point is: Greek referendum won't be a derby EU Commission vs Tsipras, but euro vs drachma. This is the choice," Reuters quoted Renzi as saying on Twitter on Monday.