If the Greek economy imposes fresh austerity measures which lead to a further contraction in its economy, without debt forgiveness, the The National Institute of Economic and Social Research (NIESR) in the UK has warned that the country will remain stuck in a permanent depression-cycle.

Britain's longest running independent research institute says that the VAT increases which have been accepted by the Greek government will lead to a 1 percent drop in the country's economic output in 2016.

The report forecasts that by the time the economy stabilises in the middle of 2016, its gross domestic product will be 30 percent lower than it was in 2010, and 7 percent lower than when it joined the euro.

Greece's stock market reopened on Monday after remaining closed for five weeks - the five banks which make up the country's banking index all suffered double digit losses, with three of them hitting the 30 percent loss-limit, triggering an automatic trading suspension.

Greece is reported to be days away from securing a fresh multibillion euro bailout worth up to €86bn which needs to be agreed before August 20th.

Leaving talks in Athens, Greek finance minister Euclid Tsakalotos said that the negotiations have been fruitful, and that he is "encouraged" by the progress being made.

European Commission spokesperson Mina Andreeva added that the negotiation process is "moving in the right direction" and that "intense work" will continue in the coming days.