NEW YORK (TheStreet) -- Talks between Greek Prime Minister Alexis Tsipras and European leaders carried on without an agreement on the package of severe austerity measures demanded by European creditors in return for a financial rescue that would prevent the collapse of Greece's banks and the country's potential exit from the euro, the Associated Press reported. The talks continued into the night.
Citing European officials commenting on condition of anonymity, the AP said talks between Greece and its European creditors appear to be stuck on several issues and a resolution is not anticipated for a while yet.
One official the AP cited said the main difference centered on when the European Central Bank could start to increase its emergency liquidity assistance to Greek banks.
Greek Prime Minister Alexis Tsipras wants a deal to pave the way to ECB help as soon as Monday, the official said, while European creditors would prefer to wait until the Greek Parliament passes several austerity measures.
Another official, who also spoke to the AP on condition of anonymity, said some issues remain difficult, including a proposal for Greece to transfer billions of euros' worth of state assets to an independent fund in Luxembourg under European supervision.
Greece would prefer to avoid leaving the euro, and Tripras came into the conference seeking a compromise deal at Sunday's emergency summit of eurozone leaders despite what the sovereign considers to be extremely harsh conditions.
Some of Greece's eurozone partners raised possibility of a temporary Greek exit from Europe's single currency, which Greece has been a member of since 2002.
Greece would be the first country to temporarily leave the euro currency, and what it would entail is unclear, since there's no mechanism in place to carry out such a measure, according to the report.
The leaders, who have been in closed-door talks since 5 p.m. (1500 GMT; 11 a.m. EDT), have vowed to keep talking until something concrete can emerge, the report said. The eurozone's top official, Jeroen Dijsselbloem, presented the leaders with a set of proposals.
The final effort on "some big issues," would be left to the leaders, Dijsselbloem said.
A Greek government official, who spoke on condition of anonymity because of the sensitivity of the ongoing talks, said European Central Bank President Mario Draghi has warned eurozone finance ministers that Greek banks are at risk and that the need for a deal is pressing.
Without the prospect of a deal, the ECB won't be able to increase emergency liquidity assistance to Greek banks. It has frozen its help over the past couple of weeks as the banks have stayed closed. The fear is that by Monday the banks may have exhausted all their cash reserves, which could spark financial chaos.
Greece's prime minister and European leaders continued to work Sunday toward overcoming their differences in an effort to produce a tentative agreement to halt Greece's financial collapse -- the effects of which would be felt across Europe -- but reports said the parties seem unlikely to reach an agreement.
As Greece's self-imposed Sunday deadline approached, the European nations using the shared euro currency sought more proof from Greek Prime Minister Alexis Tsipras that he could be fully trusted to enact wide-ranging economic reforms to safeguard Greece's future in the common euro currency the Associated Press reported.
"We owe that to the peoples of Europe who want Europe united and not divided," he said. "We can reach an agreement tonight if all parties want it."
Greece has asked Europe's bailout fund for a 53.5 billion-euro ($59.5 billion) three-year financial package, but many officials in Brussels say the figure will have to be much higher and insist on tough Greek austerity measures. This would be Greece's third bailout in five years.
The country desperately needs help to avoid a financial collapse. The economy is in freefall and the country faces big debt repayments in the coming weeks. Greek banks have been shuttered for nearly two weeks, and daily withdrawals from ATMs have been limited to 60 euros ($67). Banks were expected to run out of cash last week, and some say they have barely enough to last through the week.
Chancellor Angela Merkel said Germany would not sway from its stance that Greece needs to do much more to get any help just to save its position in the 19-nation eurozone, reports said.
"There will not be an agreement at all costs," she said, coming into Sunday's summit meeting. "Nerves are tense, but it has to be clear that the advantages outweigh the disadvantages."
Highlighting the differences within the creditors' camp, French President Francois Hollande said it is vital to keep Greece in the eurozone and avoid a so-called "Grexit," the AP reported.
If Greece had to leave the euro currency "it's Europe that would go backward," Hollande said. "And that I do not want."
Greece's finance minister was in talks with creditors Saturday in an effort to convince them that the Greek government can deliver on its reform promises in exchange for a financial rescue securing the country's future in the euro.
After persuading the Greek parliament early Saturday to back austerity measures to stave off financial collapse, the Greek government is facing a difficult task getting its European creditors to support its three-year bailout request. Finance ministers and top officials of the eurozone said the same thing as they arrived for a key meeting on Greece's bailout proposals -- we don't fully trust you, the Associated Press reported.
European officials said Greece would need nearly $83 billion in new funding in the coming years, according to The Wall Street Journal.
Greece's Parliament voted late Friday to back a plan that would offer spending cuts to creditors in exchange for cash to keep its banking system afloat, putting a resolution within reach for a crisis that has threatened to force the debt-laden country from the European Union.
The proposals from Prime Minister Alexis Tsipras, similar to a plan rejected by voters in a referendum last weekend, passed with 84% of the vote. Those abstaining or absent from the vote included prominent governing Syriza party members such as Parliament Speaker Zoe Konstantopoulou, indicating a potentially severe dissent problem for the government's majority.
The plan relies on cuts to pensions and tax increases, and in those respects, is identical to one offered by Greece's European Union creditors before Sunday's referendum. The motion authorizes the government to use the reform proposals as the basis for negotiations with creditors, but the dissatisfaction from Tsipras' own party shows how far removed the proposals are from its original platform.
Before the parliamentary session, former Finance Minister Yanis Varoufakis took to Twitter to offer his support. Varoufakis, who resigned Monday, drew the ire of other EU ministers in negotiations leading up to last weekend's referendum.
Greece now has until the end of the day Sunday to reach a deal with its creditors. To that end, EU officials will meet in Brussels to negotiate a solution before Greece's banks run out of cash, which would likely prompt Greece to leave the Eurozone.
The Eurogroup, an informal body of ministers from member nations, will review the proposals on Saturday with assessments from Greece's creditors: the European Commission, the European Central Bank and the International Monetary Fund, according to its website.
If the proposal is approved, Greece would get a three-year loan package worth nearly $60 billion (53.5 billion euros) as well as some form of debt relief. That is far more than the 7.2 billion euros left over from Greece's previous bailout that had been at stake in the country's five-month negotiations until last month.
Speaking earlier in the debate that began just before midnight Friday, Tsipras acknowledged the reforms his government has proposed were harsh and include measures far from his party's election pledges, but insisted they were Greece's best chance. Tsipras said his government had made mistakes during his six-month tenure but said he had negotiated as hard as he could.
"There is no doubt that for six months now we've been in a war," he said, adding that his government had fought "difficult battles" and had lost some of them.
"Now I have the feeling we've reached the boundary line. From here on there is a minefield, and I don't have the right to dismiss this or hide it from the Greek people," he said.
Earlier Friday, markets around the world had risen on news of the new initiative. Bourses across Europe traded 2% to 3% higher, and U.S. markets gained between 1.21% and 1.53%.
Should Greece still end up leaving the European Union, the potential fallout is projected to be small, although there are signs that uncertain about the country's future might continue to hurt the bottom lines of U.S. businesses into the second half of 2015.
The performance of many U.S. companies with operations in Europe was hurt during the the first quarter of 2015 as the currency fell to a quarterly average of $1.13 from $1.25 during the last three months of 2014, according to data compiled by Bloomberg.
Now, as the drama surrounding Greece's debt moves into the third quarter, the same companies must anticipate further fluctuations in the currency and try to insulate themselves.
Monetary policy "favors a stronger dollar and a weaker Euro" for the near future, said Win Thin, global head of emerging markets at New York-based Brown Brothers Harriman.
But exactly where the dollar might go against the euro is unclear. Thin said his firm is projecting the euro to fall back to $1.05 by the end of 2015. Estimates from other analysts run the gamut from below parity with the dollar to just above $1.20 -- both still well below a peak of about $1.36 a year ago.
Companies ranging from athletic apparel manufacturer Nike (NKE) - Get Report to software manufacturer Red Hat (RHT) - Get Report have said a stronger dollar hurt earnings this year. Consumer-goods companies saw overseas revenue drop as the currency with which their customers paid declined in value.
Estimates for future orders at Nike compiled from April through June, an indicator of sales for the coming quarter, increased 2% after accounting for changes in currency. Had the dollar not risen against the euro, orders would have been up 13%, according to the company's earnings statement released in June.
Insulating a company from a drop like the one in the first quarter is tough, said Susquehanna International Group analyst Christopher Svezia.
"There's not too much you can do," said Svezia, who covers athletic apparel manufacturers including Nike. "It's just a risk of doing business on a global scale."
The options that are available are fraught with risk. One choice is raising the prices of the goods and services in Europe to make up for lost revenue, though that could make U.S. companies less competitive, Svezia said.
Another choice is locking in rates for euros through hedges, though that depends on the currency reaching -- and, ideally, staying at -- a certain rate.
Whether those bets end up being good ones will depend in part on what agreements EU leaders can reach with the Greek government, Brown Brothers Harriman's Thin said. If Greece leaves the Eurozone, the precedent that sets for other countries might also pull down the currency, contrary to analysts who say a "Grexit" would be a boost to the euro.
"What happens if the anti-austerity [movement] comes in Spain and Italy?" he asked. "If Greece leaves it will be a disaster."
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