The International Monetary Fund has issued a new warning about Greece defaulting on its debt.
It has already ruled out giving the country more time to pay it off and the next repayment's due next month.
Poul Thomsen - the European head of the IMF - says if Greece does default, the impact could be wide-reaching.
He is also concerned the Greek economy started to falter again in the final months of 2014:
Earlier this week yields on Greek ten-year bonds rose to their highest levels in two years after it emerged that the IMF, one of the country’s three bail-out funders, had ruled out any deferral of close to €1bn in loan repayments due in May.
The yield, or interest rate on Greek ten-year bonds rose to 12.6 percent yesterday – this compares to current yields on equivalent Irish bonds of 0.55 percent.
Explaining the IMF’s decision, Managing Director Christine Lagarde said an advanced economy had never asked for a payment delay and she would certainly not support such a move.
Greek Prime Minister Alexis Tsipras expressed confidence that a deal could still be reached before the end of April despite what he called the "cacophony and erratic leaks and statements in recent days from the other side."
