Eurozone finance ministers declined to extend Greece's bailout Tuesday hours before its expiry and a possible IMF default.
Chancellor Angela Merkel said that Germany won't enter into new aid negotiations with Athens before Greece's weekend referendum.
Nobody in the halls of the International Monetary Fund in Washington has any illusion: Greece is going to default, delivering a new blow to the global crisis bank's credibility.
Irish Prime Minister Enda Kenny said that Greece can still return to negotiations with its international creditors to avert a default and possible exit from the euro.
Russian Foreign Minister Sergei Lavrov expressed the hope that Brussels would avoid "negative scenarios" over Greece amid fears that the country is heading for a eurozone exit.
It has already been dubbed "Black Monday" -- jittery housewives, shoppers and business owners queued in vain at cash machines in Athens, where the country awoke to capital controls and shuttered banks.
The president of the European Commission will make his latest proposals later to try to avoid a Greek default, adding that Athens was 'centimetres' away from a deal when discussions broke down.
Italy's finance minister played down the threat of Italy being hit by the fallout from market instability linked to the Greek crisis.
The Greek government said it had called an emergency gathering of its systemic stability council, as speculation mounted of capital controls being imposed and increasing signs of a bank run.
Greece will hold a referendum on July 5 on the outcome of negotiations with its international creditors taking place in Brussels.
The Greek parliament voted in favour of a law to grant citizenship to immigrants' children who were born and raised in Greece, an issue unresolved for generations.
Crisis-hit Greece is in the "final stretch" of negotiations with creditors and could reach agreement shortly, Finance Minister Yanis Varoufakis indicated.
French Prime Minister Manuel Valls said that there is "still a lot of work to do" if Greece and its creditors are to reach an agreement to avert a possible default.
Eurozone finance ministers will meet again in a bid to reach a final bailout deal for Greece ahead of an EU leaders' summit the following day.
Greece does not want any more help from the IMF, minister of state Nikos Pappas said on the eve of a summit.
The International Monetary Fund, deadlocked with Greece over further financial aid, approved a new loan installment for Cyprus.
European Commission chief Jean-Claude Juncker voiced frustration with Greek Prime Minister Alexis Tsipras in a media report amid the deepening debt crisis.
A Greek exit from the eurozone would be the beginning of the end of the single currency, Greek Prime Minister Alexis Tsipras was quoted.
IMF chief Christine Lagarde warned that a resolution to five months of tortuous debt talks with Greece required "adults in the room" in an apparent sideswipe at Greek officials.
Greek Prime Minister Alexis Tsipras called European Commission chief Jean-Claude Juncker, their first contact on the stand-off over a bailout deal since last week.