Prime Minister Joseph Muscat said this evening that bailout talks between the EU and Greece are expected to go to the wire, and he could not predict the outcome, although no one was giving up hope of a solution.
“We are doing our best to keep them in (the eurozone) but with solidarity comes responsibility,” Dr Muscat said in a comment at the EU heads of government meeting in Brussels.
Dr Muscat said he did not expect a quick resolution.
Without a deal to unlock frozen aid, Greece, which has received two bailouts worth 240 billion euros since 2010, is set to default on a crucial repayment to the International Monetary Fund next Tuesday.
That could trigger a bank run and capital controls, possibly setting Athens on a path out of the euro zone and undermining the founding principle that membership is irrevocable.
Malta's loans to Greece as part of the bailouts so far are equivalent to 2.2% of GDP.
Dr Muscat explained that Greece was like a patient in bed who needed a breather, saying it does not have the money to pay up.
Some countries wanted to switch off the life support machine if payment was not made on time, while others appeared willing to give Greece the breather it wanted.
Should the patient die, the loans which Malta and the other countries had given would be lost, Dr Muscat said.
A Eurogroup meeting of euro zone finance ministers charged with finding a solution ended without a deal earlier in the afternoon, as frustration mounted.
Talks are set to continue on Saturday but the spectre of a Greek eurozone exit is now a possibility, though analysts in Brussels who spoke to Times of Malta expressed optimism that a last-minute deal may still be clinched.
Finance Minister Edward Scicluna said Greece had presented its creditors with late proposals some of which appear to be unrealistic considering the country’s financial dire straits.
“Today, we almost said take it or leave it. For months they came up with nothing… they had the time to do so,” he said in a frustrated tone.
“We said let’s meet on Saturday with or without an agreement. I interpret it as the end of the line unless the issue is extended by some more weeks. But I don’t think it will happen,” he told reporters.
He said when countries are hard-pressed they have no choice but to take tough decisions. Greece failed to do so.
“In this case, we meet and nothing happens. And unlike countries like Ireland and Cyprus, trust deteriorated as we went along,” he said, adding that his views were echoed by the majority of finance ministers.
Eurogroup chairman Jeroen Dijsselbloem said the door was still open for Greece to accept the proposals of its creditors.
Only once agreement is reached will the European Commission, the European Central Bank (ECB) and the International Monetary Fund (IMF) unlock the final €7.2bn tranche of bailout funds for cash-strapped Greece.