NEW YORK ( TheStreet) -- European leaders may step forward and make good on the debt Greece owes to the International Monetary Fund, according to one expert.

Jan Randolph, Director of Sovereign Risk at research group IHS, believes the Eurozone group governments have probably made private assurances that they will cover Greece's debt to the IMF.

Randolph said the group won't make that public, because it would give Greece leverage. 

Randolph says the possibility of contagion following a Greek default is low, and that's not why Europe would step in. "I think the reason is moral really," said Randolph. "The U.S. government, the Canadian government, and possibly the U.K. government would revolt at the idea that a Eurozone government like Greece can't make good on an IMF debt while being in the Eurozone group."

According to the media reports, the European Union  has called an emergency summit in Brussels for Monday after finance ministers failed in their latest efforts to resolve the debt crisis. 

Bloomberg reported that Eurogroup President Jeroen Dijsselboem told reporters that Greece will not receive any financial aid before its current bailout expires at the end of the month.

When asked if Greece could be forced to leave the Euro, he responded "the way it goes now we're going in that direction."  

Randolph said the odds are increasing that no deal will be reached. He added that what's critical for Greece is that without a deal, it must rely on its own banks to finance its government.

"I think the critical point is really the Greek banks and what happens to them," said Randolph. " The European Central Bank will not pull the liquidity lines, pull the plug on Greek banks, they're keeping them afloat of course, unless it gets the political nod from leaders."

But Randolph indicated Greece might have some wiggle room with its deadline. "There's a lot more time to be played I think than many think, in terms of these deadlines, although there is a  drop dead deadline within the next month," Randolph.

He said that in Greece tax revenues are faltering, and there will be government shutdowns. He said the situation will deteriorate and more deposits will leave Greek banks.

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