Ministers of the Eurogroup, which represents the 19 members of the single currency, will discuss a request made by the Greek government yesterday for an extension of its eurozone loan programme, known as the Master Financial Assistance Facility Agreement.

The Greek government, now led by the Left-wing Syriza party, proposed in a formal letter to the group to extend this loan deal for six months, instead of renewing its existing international bailout deal, which is due to expire on February 28.

The letter stated: ‘In this context, the Greek authorities are now applying for the extension of the Master Financial Assistance Facility Agreement for a period of six months from its termination during which period we shall proceed jointly, and making best use of given flexibility in the current arrangement, toward its successful conclusion and review on the basis of the proposals of, on the one hand, the Greek government and, on the other, the institutions.’

The European Commission has welcomed the Greek proposal, but Germany said it failed to maintain the features of the bailout programme. This is the same reason why the meeting on Monday ended in deadlock.

Greece could run out of money if it does not agree to extend the €240bn bailout deal with the ‘troika’ of the European Union, the European Central Bank and the International Monetary Fund.

A Greek government spokesman gave an ultimatum, saying the Eurogroup had just two choices: to accept or reject the Greek request.

‘We will now discover who wants to find a solution, and who does not,’ he said.

The meeting will take place at 4:30pm (3:30pm GMT).