The European Central Bank announced on Monday that it will not start its withdrawal from the single currency at the end of March unless Greece agrees to a new deal.
The European Central Fund said it would not start withdrawing its assets from Greek banks until Greek authorities agree to a “revenue-sharing” deal that includes a deal to prevent Greece defaulting on its debt.
The decision follows a series of meetings between European leaders and Greek Prime Minister Alexis Tsipras.
Tsipras has rejected demands that Greece repay its creditors, saying the country needs to pay them to maintain stability.
He also wants to reduce taxes to make up for a projected $20 billion in budget cuts.
Tsipsa has also said he will not sign any further bailout package until Greece pays back the loans.
Greece has defaulted on the debts of its creditors in the past.
It is one of the most indebted countries in Europe, with $17.6 billion of its $20.5 billion in debt owed to the International Monetary Fund and the European Central bank.
The ECB, which has $2.3 trillion in assets under management, has been forced to cut off its credit to Greek banks because it cannot pay the interest it owes.
The bank’s credit rating has been downgraded to junk status by Moody’s Investors Service.
The bank said in a statement on Monday it was taking action to reduce the impact of any future default on its financial position.