Greek PM Alex Tsipras has resumed talks with creditors this morning, as the deadline for a deal grows ever closer.

Greece’s ruling party dismissed creditors’ demands as “blackmail”, striking a defiant tone in the face of accusations that they were refusing to compromise.

If a deal is not struck within the next 48 hours, Greece are unlikely to be able to repay the 1.5bn euros owed to the IMF. They will then face default, leading to a possible exit from the EU. However if an agreement is reached, creditors will unlock another 7.2bn euros worth of bailout funds.

“The lenders’ demand to bring annihilating measures back to the table shows that the blackmail against Greece is reaching a climax,” Nikos Filis, the ruling Syriza party’s parliamentary spokesman told Mega TV.

Whilst talks looked positive at the beginning of the week, there is now growing doubt that a deal will be reached before Saturday. European stocks are suffering in the wake of the uncertainty:

“Optimism around a Greek deal had been driving price action all week but a stall in the negotiation process has put the brakes on the rally,” said IG market strategist Stan Shamu.