The deadlock between Athens and its international creditors is raising fears in Greece that the country could end up outside the eurozone within weeks.
The Greek government has warned it may be unable to repay an International Monetary Fund (IMF) loan due on 5 June unless it reaches a deal with emergency creditors to release remaining bailout funds.
Emmanouil Kambouris, a restaurant owner in Kos, said: “We have taken out a loan in euros, and I hear that they are going to take us back to the drachma. It would be a disaster. It is impossible.”
“All these people in charge should become more grounded and put their brains together to solve this. It has to be solved, without leaving the euro,” Kambouris continued.
Athens has been told it must commit to long-term economic reforms in order to secure the final bailout instalment of 7.2 billion euros from fellow eurozone states and the IMF.
Jan Randolph, director of sovereign risk at IHS Global Insight, said neither Athens nor Brussels was ready for a Greek exit from the eurozone.
“A Grexit requires a lot of decision-making on both sides, gateways to be passed through. And we are not there yet really.”
“I think there will be an implosion on the politics side rather than financial contagion,” Randolph said.