Greece is quickly running out of money and time, raising the risk it could exit the eurozone and rattle the global economy.
Greek Prime Minister Alexis Tsipras said Monday the country is in danger of "financial strangulation," according to the Associated Press, amid rumors that the government could go bankrupt in a matter of weeks.
Things are so tight for the Greek government that it recently requested all of its overseas embassies and consulates to return all unallocated funds to the nation's central tax authority.
Over the weekend Britain's Channel 4 published a leaked International Monetary Fund staff memo, dated from last week, that states there is "no possibility" of Greek authorities making full payment on the $2.35 billion owed to the IMF by June 5, "unless an agreement is reached with international partners."
Tsipras said Monday that Greece has proposed a "viable" deal with the IMF and other creditors in a move to secure a 7.2 billion euro ($8 billion) cash injection, AP reported, the final payment due from the country's 240 billion-euro bailout program.
The Greek economy has been in crisis for years. Earlier this year, the country's newly elected leftist government demanded relief from its creditors, including the European Union, European Central Bank and IMF, as Athens attempts to renegotiate its bailout package. Greek lawmakers are pushing back against demands they proceed with austerity measures, such as painful cuts to the country's pension system.
International lenders could be losing patience with Greece. Germany's finance minister recently suggested that Greek voters may need a referendum to approve and implement financial reforms if they want the bailout funding to continue.
But analysts question whether such actions would bring any long-term resolution.
"A public referendum could help to break the current deadlock between Greece and its creditors. But it might only be a short-term solution and much could depend on its precise purpose and phrasing," said Jonathan Loynes, chief European economist for Capital Economics, in a note.
"With Greece close to running out of money, it is unclear that a referendum could actually be organized quickly enough to release the money needed for Greece to meet its forthcoming obligations," he added.
The threat of a Greek exit from the eurozone had one money manager steering largely clear of investment in Europe.
"Overall, we think Europe is a potentially attractive market, but the Greece crisis continues to be a major concern, as it has been for the past two years," Christopher Ailman, chief investment officer for the $191.2 billion California State Teachers' Retirement System, told Pensions & Investments. "It remains a factor in our decision to maintain a relatively light footprint in Europe, preferring a home-country bias for the portfolio."