ATHENS (CNN) — Greece made a desperate attempt to halt its plunge into economic chaos Tuesday by requesting a third European bailout even as it hurtled toward default.

The prime minister’s office said in a statement that the country was asking for a two-year bailout from Europe’s rescue fund, the European Stability Mechanism.

Greece is fast running out of money, having rejected the conditions Europe set for releasing the remaining billions of its existing bailout, which expires at midnight on Tuesday.

Eurozone finance ministers were due to discuss the proposal in an emergency teleconference at 1 pm ET.

The Greek government said earlier that it would not pay the International Monetary Fund the 1.5 billion euros ($1.7 billion) it owes Tuesday. The 11th hour proposal from Athens for a new rescue won’t help them avoid becoming the first developed economy to default to the IMF.

IMF Managing Director Christine Lagarde said earlier this month failure to pay by June 30 would put Greece in default.

“There is no grace period or two months’ delay as I have seen here and there,” Lagarde said.

Greece won’t have access to IMF’s resources until the debt is cleared. The country could ultimately be expelled from the IMF but that might take years.

IMF payments are denominated in Special Drawing Rights, the value of which is determined by a basket of major currencies. On Tuesday, Greece’s lump sum payment for June was calculated at 1.5 billion euros.

The default marks another dramatic step in the country’s financial collapse, and comes as Greek leaders held a series of last-ditch talks with EU officials in a bid to find a way back from the brink.

Greek Prime Minister Alexis Tsipras called European Commission President Jean-Paul Juncker late Monday. Tsipras’ office said he had spoken to Juncker again on Tuesday, and to Mario Draghi, president of the European Central Bank.

Juncker reiterated that talks on a bailout could be revived but only if Greece accepted proposals put forward by its creditors Friday night, and if Tsipras was willing to support them in a referendum he called for July 5.

Tsipras went on Greek TV late Monday to repeat his scathing criticism of the cash-for-reform offer, saying it would enslave the Greek people.

He also hinted he may quit if Greeks voted in favor.

Greece is on its own financially once its existing baillout agreement expires. Sunday’s vote — if it goes ahead — could determine the country’s future in the eurozone.

German Chancellor Angela Merkel confirmed the bailout would end at midnight but said “the door is open for dialogue.”

Greek banks remain shut Tuesday and limits on cash withdrawals were in place as the country tried to stave off financial collapse before the vote.

Daily withdrawals are limited to 60 euros, or about $67.

The country’s banks have been bleeding billions of euros for months, even before the country’s debt crisis took a dramatic turn for the worse this weekend, leading to long lines at ATMs in Athens.

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