Greek debt: Merkel urges deal before EU summit

German Chancellor Angela Merkel says there must be a deal between Greece and its creditors in a bid to decide on a bailout agreement in the coming European Union’s (EU) emergency summit.

She has warned that the EU emergency summit on June 22 would not be able to make any decisions if there is no agreement with Greece.

"Let me make it very clear as to the expectations. Such a summit can only become a summit of decisions if there is something to base a decision on," Merkel said on Friday.

Referring to the failure of talks between Greece and its international lenders, the European Central Bank (ECB), the International Monetary Fund (IMF) and European Commission, she stressed that "It is up to the three institutions to assess this, and up to now we don't have the assessment."

The leaders of the Eurozone nations will come together on June 22 in Brussels. The international lenders refuse to pay Athens the remaining part of the debt-ridden country’s bailout program, saying that Athens must first implement further economic reforms, including changes to pensions, the value-added tax (VAT) system and the budget surplus.

On the other hand, the office of Prime Minister Alexis Tsipras said in a statement that Athens still is hopeful to reach a deal with its creditors to avoid defaulting on its debt.

Athens will have to default on its debt if it fails to clinch a deal that would pave the way for releasing loans worth 7.2 billion Euros by the end of June.

Athens is in need of the financial help to repay its debts, including 1.6 billion euros (USD 1.8 billion) it owes the International Monetary Fund (IMF), by the end of June, and without a deal it faces default and may even be forced to leave the eurozone.

Following the country’s economic crisis in 2009, Athens received two bailouts worth a total of €240 billion ($272 billion) from the three international creditors.