An emergency meeting of lenders from eurozone countries will be held on Monday after the finance ministers of the 19-nation currency bloc, once again failed to reach an agreement on a cash for reforms deal at talks in Luxembourg on Thursday.
"Regrettably ... too little progress has been made. No agreement is in sight," said Eurogroup chairman Jeroen Dijsselbloem at a news conference. The eurozone ministers also sent a strong implication that it is up to Athens to come up with new proposals, he added.
Finnish Finance Minister Alexander Stubb expressed his frustration concerning Greece while talking to CNBC after negotiations failed on Thursday. "I think we've come pretty much to a dead end. We've been trying to find a solution for a long time," Stubb told CNBC. "The ball has been firmly in the Greek court ever since the beginning and I think it continues to be there," he said.
European Council President Donald Tusk has stated that the heads of state of the eurozone are expected to meet in Brussels at 17:00 GMT on Monday to discuss Greece’s current situation.
In addition, the European Central Bank (ECB) will hold a special gathering on Friday to discuss a further extension of emergency funding for Greek banks, which have been hit hard by a wave of capital outflows amid a possible “Grexit” from the euro. According to a senior banking source, the Greek public have pulled close to 2 billion euros out of banks over the last three days since debt talks failed over the weekend.
A surprise response to a question asked at the Eurogroup meeting baffled observers, with ECB Executive Board member Benoit Coeure saying banks may not be open on Monday.
Meanwhile, Greek Finance Minister Yanis Varoufakis has warned that the eurozone is dangerously close to creating an “accident,” after they rejected his ideas.
Greece has less than two weeks left to make another obligatory payment of 1.6 billion euro ($1.8 billion) to the International Monetary Fund (IMF). Greek officials say their country is in desperate need of funds in order to make the payments.