Greece's Prime Minister Alexis Tsipras is to hold an emergency government meeting at midday London time to discuss the failure of the latest round of discussions with its creditors to help stop the country tumbling into bankruptcy.
Tsipras will meet with Deputy Prime Minister Yannis Dragasakis, State Minister Nikos Pappas and Alternative Foreign Minister for International Economic Relations Euclid Tsakalotos in the wake of the breakdown of negotiations in Brussels at the weekend, a government spokesman confirmed.
On Monday, European stocks fell as talks between Greece and creditors fell apart over the weekend.
Talks between Greece and its creditors over the weekend yet again failed to resolve the impasse over reforms, with European officials blaming Greece for failing to offer concessions in return for a final tranche of desperately-needed financial aid.
Former Greek Prime Minister, George Papandreou, who led the country from 2009- 2011 and oversaw Greece's first request for an international bailout in 2010, told CNBC that the situation was a mess.
"It seems again very close to the brink of a disaster and it will be a real sin (if talks fail)," he told CNBC Friday.
The Greek people had sacrificed a lot over the last five years and battled high unemployment, he said, in order to "remain in the euro and at some point be able to access the markets and then get on a path of growth."
"So I think we really need out of both sides to climb down from their high horses and really work on a compromise, on an honorable compromise, to find a solution and move forward in a sustainable way," Papandreou added.
Greece received its first international bailout -- worth 110 billion euros -- in 2010, but the aid was accompanied by unpopular austerity measures. As his popularity plummeted, Papandreou called for a referendum on the terms of the bailout deal but the vote did not come about. Political turmoil ensued and he resigned in 2011.