Greece could still reach a deal with its creditors - the EU, IMF and European Central Bank – if it shows enough resolution to do so, with Germany’s efforts focused on keeping the country in the eurozone, German Chancellor Angela Merkel said on Thursday.
"I'm still convinced: Where there's a will, there's a way," Merkel said speaking in the German parliament.
"If those in charge in Greece can muster the will, an agreement with the three institutions is still possible."
Greece must decisively implement reforms, she added.
As Greece and its international creditors stick to their positions, the failure to reach a deal is holding up the release of €7.2 billion ($8.1 billion) in bailout funds for the country. The Bank of Greece warned in a report on Wednesday that failure to reach an agreement could put the country on path to default as well as an exit from the eurozone.
The possibility of Greece paying the $1.7 billion it owes the IMF later this month drops significantly if negotiations are not successful.
Finance ministers from the eurozone met in Luxembourg on Thursday in last-minute attempts to clinch a deal. There were increasingly acrimonious exchanges between Greece’s creditors and Greek leaders in the days ahead of the meeting.
European Commission President Jean-Claude Juncker said on Tuesday the Greek government was misleading voters while Greek Prime Minister Alexis Tsipras accused the EU and the IMF of trying to "humiliate" his country.
Tsipras headed to Russia on Thursday to meet with President Vladimir Putin on Friday afternoon. Tsipras is due to make a keynote speech at the St. Petersburg International Economic Forum ahead of the meeting.
Russian Deputy Prime Minister Arkady Dvorkovich would not comment on whether Russia was going to lend money to Greece, AP reported on Thursday.