Greece says deal on debt crisis unlikely at Thursday talks

Greece has a "political and moral duty" to reach an agreement with creditors over its debt crisis, Finance Minister Yanis Varoufakis has said.

But he said Thursday's meeting of Euro zone finance ministers was unlikely to bring an immediate solution.

In return for more funding, creditors want further reforms from Greece.

But the ruling Syriza party is resisting those demands and, with talks deadlocked, fears are growing that Greece may default on its debts.

The European Commission, the European Central Bank (ECB) and the International Monetary Fund (IMF) could extend fresh finance, but are insisting on reform and further austerity measures.

Mr Varoufakis, when asked if there could be an agreement at the meeting of Euro zone finance ministers in Luxembourg on Thursday, said: "I do not believe so."

"Tomorrow we will set the scene for what we consider to be our political and moral duty, and that is to reach an agreement very, very quickly with our partners and the institutions," he said.

On Wednesday Greece's central bank warned that the country could be on a "painful course" to default and exit from both the Euro zone and the EU.

Greece has seen regular protests against austerity measures

The Bank of Greece also warned that the country's economic slowdown would accelerate without a deal.

"Failure to reach an agreement would... mark the beginning of a painful course that would lead initially to a Greek default and ultimately to the country's exit from the euro area and, most likely, from the European Union," it said in a report.

The bank added that about €30 bn was withdrawn from Greek bank deposits between October and April.