European Central Bank President Mario Draghi casts doubt on the possibility of saving Greece from bankruptcy.
Asked if the Greek question can be wrapped up, Draghi told Italian financial daily Il Sole 24 Ore: "I don't know, this time it's really difficult."
He also excluded the possibility of Russia coming to Athens's rescue: "I don't believe so, I don't see it as a real risk ... and then, they don't have money themselves" Reuters reported Draghi as saying.
On July 20, Greece must repay €3.5 billion in bonds held by the European Central Bank. The ECB is now keeping Greek banks in a state of suspended animation: alive, but unable to get their hands on additional emergency funds beyond the €89 billion they have already taken.
But if Greece misses the July 20 payment, the ECB is widely expected to cut them off entirely; a move that would send the country's financial system into meltdown and force the government to print its own money to recapitalize them. That makes the withdrawal of ECB liquidity for banks a potential trigger for a Greek exit from the euro zone.
For the time being the ECB is leaving the level of aid to Greek banks unchanged. It will meet next Monday to consider its next moves.