The impasse forced eurozone finance ministers to cut short a meeting yesterday which they plan to resume today. Concern over the lack of progress weighed on financial markets, with stock indexes falling in the US, where trading was still open.
Earlier in the day, Greek Prime Minister Alexis Tsipras held long talks with key creditors but bickered again over what kind of reforms the country should make in return for much-needed loans.
Tsipras rejected the creditors' new suggestions, saying they put both sides further away from a deal.
"The Greek side is unable to agree on such a course," a Greek government official said after Tsipras assessed the proposals, which included fresh cuts in public sector payrolls and a timetable to scrap a pension safety net fund.
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"These are very tough negotiations," the Greek official said. "But there is a common will to get somewhere." The official spoke only on condition of anonymity because the talks were ongoing.
After the finance ministers broke up their meeting, Tsipras again went into meetings with European and IMF top officials.
Greece has a 1.6 billion euro (USD 1.8 billion) debt to pay on Tuesday which it cannot afford unless the creditors unfreeze 7.2 billion euros (8.1 billion dollars) in bailout money.
A Greek exit from the euro would be hugely painful for the country. Some experts say it could be manageable for Europe and the world economy, but that remains unclear.
Government bond yields in Greece, Spain and Portugal rose, an indication of investor concern.
Elected on an anti-bailout platform in January, Tsipras' left-wing Syriza party had promised to scrap all austerity measures and demand forgiveness on a chunk of the country's bailout debt.