Greece debt crisis
Greek Prime Minister Alexis Tsipras delivers a speech during a parliamentary session in Athens, Greece Alkis Konstantinidis/Reuters

Greek MPs have ratified Prime Minister Alexis Tsipras's proposal for a referendum on the bailout terms set by international creditors.

As many as 179 members of the 300-strong house approved the referendum, which will take place on 5 July. The 13-hour-long parliament session ended at about 03:00 am on Sunday, 28 June.

Members of the far-right Golden Dawn voted in favour of the referendum along with Tsipras's leftist Syriza Party while the pro-European New Democracy, Pasok and the centre-left To Patomi opposed it.

The referendum will let Greeks decide whether to accept the bailout terms set out by the creditors. Tsipras has been calling for a resounding "No" in order to fortify Athens's position.

Just before the parliament vote in the early hours of Sunday, 28 June, the Greek prime minister said the creditors' offer is "an insulting ultimatum" to Athens.

Tsipras said in his parliament address, which was peppered with nationalist sentiments and democratic values: "The day of truth is coming for the creditors, the time when they will see that Greece will not surrender, that Greece is not a game that has ended."

"I am certain that the Greek people will rise to the historical circumstances and issue a resounding 'No' to the ultimatum."

European partners are sceptical about Greece's decision to hold the referendum as it would risk the debt-ridden country exiting the single-currency eurozone.

"Greece is and should remain euro area member. In contact with leaders to ensure integrity of euro area of 19 countries," wrote the European Council President Donald Tusk on Twitter.

Meanwhile, eurozone ministers have rejected Greece's request for an extension of the bailout programme. Greece has to pay €1.6bn (£1.1bn) to the IMF by 30 June.