Eurozone finance ministers have rejected a Greek request to extend a bailout programme beyond 30 June.
A Eurogroup statement said Greece had broken off negotiations over a new bailout deal "unilaterally".
Late on Friday, Greek PM Alexis Tsipras called a surprise referendum for 5 July over the terms of any new deal.
Greece
has to pay €1.6bn (£1.1bn) to the IMF on Tuesday. Without new funds,
there are fears Greece may leave the euro and its economy may collapse.
French
Finance Minister Michel Sapin stressed after the Eurogroup talks that
all of its members wanted Greece to remain in the eurozone.
"This
is not a Greek exit from the euro zone," he told reporters. "The 18
countries, apart from Greece, all said clearly that Greece was in the
euro and should remain in the euro whatever the difficulties of the
moment." Crisis talks: As they happened
Eurogroup head Jeroen Dijsselbloem said finance ministers would
reconvene to discuss the consequences of the latest developments, and
"prepare for what's needed to ensure the stability of eurozone remains
at its high level".
It would be up to the European Central Bank
(ECB) to decide whether to continue providing emergency liquidity
funding to the Greek banking system, he added.
The ECB said it was "closely monitoring developments" and would hold a meeting in due course to discuss the situation.
Analysis: Chris Morris, BBC News, Brussels
It's
never over till it's over. But it feels like the end is perilously
close. The breakdown in talks between Greece and its creditors has to be
seen as a failure.
It wasn't supposed to happen like this. It is
also a massive gamble on all sides, and a possible turning point in the
history of the eurozone. There will still be those working feverishly
behind the scenes for compromise, but in effect neither side has blinked
yet.
When the Greek government thought it had made substantial
concessions at the beginning of the week, the creditors said it simply
wasn't enough. And while no-one can say for certain that Greece will
leave the eurozone, this is already uncharted territory.
Much will depend on the outcome of the referendum called by PM Alexis
Tsipras, if it takes place on schedule. And much will also depend on
the European Central Bank - and whether it believes it can still allow
funds to flow, to prevent banks in Greece from collapsing. ECB faces huge decision Can Greece stay in the euro? Greek
Finance Minister Yanis Varoufakis said the Eurogroup's refusal to
extend the bailout could permanently damage the credibility of the
group.
He said that what had been proposed to Greece "did not
contain any plan for giving, instilling hope in investors, both Greek
and non-Greek, in consumers, in depositors".
But Mr Varoufakis
said Greece would still try to secure a bailout deal that could then be
put to the Greek people in a referendum.
"In these crucial moments, the Greek government is fighting for there to be a last minute deal by Tuesday," he said.
At the scene: Joe Miller, BBC News, Athens
Throughout
the ups and downs of the recent negotiations, Greeks have by and large
resisted the urge to withdraw money from their accounts, pinning their
hopes on a last minute deal with the country's creditors.
But as
the deadline for Greece's €1.6bn payment to the IMF looms, and with Mr
Tsipras calling for a referendum next week, lines have begun to form
outside ATMs and bank branches in Athens.
One bank has imposed
withdrawal limits of €3,000 per account, and some ATMs have handwritten
"empty" signs on them - although I managed to withdraw cash at two
separate locations.
Some customers were given a ticket number and
told to come back in a few hours. One man told me he was 170th in line.
"The game is over," said Peter, one of those queuing. "Greece is going
into uncharted waters, and the banks will be closed on Monday, I
suspect."
Anxiety is mounting in Athens. "Everybody's really
scared," Elena, a woman in her 20s, tells me as she waits to withdraw
cash. "We need to have enough money to last the week." How did Greece get in this mess? What if the Greek talks fail Mr
Varoufakis said his government had asked for an extension of "a few
days, a couple of weeks", whereas Mr Dijsselbloem said an extension of
one month had been requested.
"How does the Greek government think that it will survive and deal with its problems in that period? I do not know," he said.
In Greece, queues have formed outside banks amid concerns that the Greek central bank might start restricting withdrawals.
Deputy
Prime Minister Yanis Dragasakis tweeted that the government would
continue working closely with the ECB and Bank of Greece "for the
stability of the country's banking system".
Greece owes roughly €340bn, mostly to its eurozone partners. Because it
can no longer borrow from the international money markets, it is
dependent on the eurozone and IMF to keep its banks functioning.
Greece timeline: Key dates ahead
27 June: Eurogroup refuses Greek request to extend existing bailout
30 June: Troika bailout programme ends as Greek €1.6bn payment to IMF due
1 July: No bailout programme could mean no emergency liquidity from the ECB
5 July: Proposed Greek referendum
10 July: Treasury bills worth €2bn to be repaid
20 July: Bonds worth €3.5bn to be repaid to eurozone partners
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