Greek prime minister Alexis Tsipras has called a referendum on the country’s bailout deal with its European creditors.

The nationwide vote, which will take place on July 5, and will ask Greece’s citizens whether they want to accept tough measures and more years of austerity put forward by the International Monetary Fund, European Union and European Central Bank.

A “no” vote would see Greece default on its debts and force the country out of the euro.

The decision to hold the referendum came as the Greek government rejected a €15bn rescue plan, lashing out at attempts to blackmail the country into submission.

“These proposals, which clearly violate the European rules and the basic rights to work, equality and dignity show that the purpose of some of the partners and institutions was not a viable agreement for all parties, but possibly the humiliation of an entire people,” Greek Prime Minister Alexis Tsipras said in a televised address to the nation.

In the absence of a deal, creditors are planning for a series of emergency default scenarios, as the banking system would likely face ruin. Capital controls in the form of enforced bank holidays and deposit withdrawal limits could come as early as Monday, according to analysts.