Federal Chancellor of Germany Angela Merkel announced the deadline by which it is necessary to conclude an agreement with Greece. She believes this should be done by Monday before markets open.

German Chancellor Angela Merkel (Photo: REUTERS 2015)

German Chancellor Angela Merkel said that a deal on a stabilization loan to Greece must be concluded before the opening of financial markets next Monday, June 29, Reuters reports . She also said she would not allow Greece to “blackmail” Germany.

The Federal Chancellor's comments on the issue of allocating loans to Greece were made at a closed meeting of the leaders of the center-right European People's Party, which includes the Christian Democratic Union as a collective member. Merkel's statements were confirmed to the agency by two participants in the meeting. Other participants refused to talk about this topic.

Merkel publicly expressed doubts on Thursday about the effectiveness of negotiations on Greece, Bloomberg reports . “It feels like we have gone back a little,” she said in Brussels, where the EU summit opens tomorrow.

French President Francois Hollande showed cautious optimism, saying a loan agreement was "possible and necessary." In his opinion, the sooner an agreement is reached between Greece and its creditors, which include the ECB, IMF and the European Commission, the better. He also stressed that Greece had no time left for further negotiations.

Eurozone finance ministers on Thursday postponed discussion of the fate of Greece until Saturday morning, Reuters reports, citing a representative of eurozone financial structures. Both sides cannot agree on the scale of pension cuts and tax increases, as well as other reforms that will guarantee the issuance of a stabilization loan.

Greece is due to repay $1.7 billion in IMF loans next week. According to the fund's rules, countries that are behind on payments cannot count on new loans until they cover the debt.

Merkel demanded that Greece be sorted out by Monday