A senior U.S. Treasury official on Thursday urged Greece and its creditors to make concessions to end an impasse over Greece's loan agreement.
U.S. officials are "closely" monitoring ongoing negotiations as they have generated increased uncertainty for the global economy, the official said. Greece will take an immediate economic hit if talks among its government, the European Union and International Monetary Fund break down, the official said.
The official noted that U.S. Treasury Secretary Jack Lew spoke to top European finance ministers on Thursday, but couldn't speculate on the timing of a potential deal.
The official added that Athens and the EU need to find a "constructive way forward" that includes an emphasis on Greek fiscal reforms.
Germany on Thursday rejected Greece's plan to prolong its loan agreement for six months and renegotiate the terms of its bailout with creditors including the EU and IMF. Berlin's rejection raised the chances that Greece would run out of money in the coming weeks.
The German government called the Greek proposal, which included some concessions from its anti-austerity ruling party, "no substantial solution."