Greece says it will not make a debt repayment to the International Monetary Fund due next month - as it doesn't have the money.
The four installments for the IMF, due in June, total 1.6 billion euros.
The country's interior minister Nikos Voutsis told a Greek television show, that he was cautiously optimistic Athens and its lenders will find an honourable compromise solution, that would allow Greece "to breathe".