The Eurozone rejected on Saturday Greece’s request to extend its bailout programme for one month, closing the door on chances of a deal to save the debt-torn country from default.
“The [bailout] programme will expire on Tuesday night. That is the latest stage we could have reached an agreement,” said Jeroen Dijsselbloem, the Dutch finance minister who chaired the Eurozone meeting.
“The situation in Greece will deteriorate very rapidly,” Dijsselbloem added.
Greece’s Prime Minister Alexis Tsipras on Saturday called for a referendum on a bailout, raising the risk the country might exit the Eurozone.
Greeks will vote on July 5 to offer a verdict on the creditors’ proposal.
Financial turmoil could hit Greece, with its ministers campaigning against the Eurozone decision.
Greek Finance Minister Yanis Varoufakis warned that the decision to leave Greece without support could cause “permanent damage to [their] credibility.”
Athens says it cannot afford $1,8 billion, the amount which has to be paid to the International Monetary Fund (IMF) until June 30 deadline.
Confusion surrounds the Greek finances as Germany’s Finance Minister Wolfgang Schaeuble said the Greek government had ended the negotiations “unilaterally.”
Hundreds of people headed to banks to withdraw cash as panic sweeps across the country.
Long lines were formed on Friday in the capital Athens while some banks have already run out of money in Thessaloniki.
Greek banks have been piling up large cash stocks, asking the Greek Central Bank to release more emergency loans.
Many Eurozone officials expect Greece to introduce capital controls as the financial situation in Greece needs urgent steps.