Greek Prime Minister Alexis Tsipras says the country has gone as far as it could in meeting the demands of its international creditors, warning that a failure to reach a deal on its bailout program will hurt all Europe.

Following a meeting with visiting Austrian Chancellor Werner Faymann in Athens on Wednesday, Tsipras emphasized that the insistence of the lenders on pension cuts would dash all hope for the bailout agreement, adding that Athens “wants an honorable compromise."

“If Europe insists in this incomprehensible option — if its political leadership insists — then they must bear the cost of developments that will not be beneficial for anyone on Europe,” he said.

Greece likely to exit euro, EU without bailout deal

In another development on Wednesday, the Greek central bank warned that the cash-strapped country could be forced out of the eurozone and the European Union (EU) if it fails to ink the bailout agreement.

"Failure to reach an agreement would... mark the beginning of a painful course that would lead initially to a Greek default and ultimately to the country's exit from the euro area and -- most likely -- from the European Union,” the bank said in a report.

The bank further warned that the Greeks would face a "deep recession [and] a dramatic decline in income levels" in case of a failure in sealing the bailout deal.

An agreement with the creditors is a “historic imperative,” and failure to reach a deal puts Greece at the risk of being relegated to “a poor country in the European South,” the central bank added.

The warnings come as the Mediterranean country is due to make a €1.6 billion (USD1.8 billion) repayment to the International Monetary Fund (IMF) at the end of the month, with another €6.7 billion (USD7.5 billion) due to the European Central Bank (ECB) in July and August. However, the Greek officials have said that Athens cannot afford the payments.

The finance ministers of the 18-nation eurozone are also expected to meet on June 18 to discuss how to reach the bailout deal with Greece.

Athens has been unable to borrow on international markets over the past years, but it has presented a list of reforms needed to restart bailout loan payments.

The creditors, however, have described Greece's reforms as insufficient, calling on Athens to impose more austerity measures to unblock funds needed to avert a possible default.

In response, the Greek premier recently accused the international lenders of trying to force the debt-ridden country and its people into humiliation.

Greece received two bailouts in 2010 and 2012 worth a total of €240 billion (USD 272 billion) from the troika of lenders - the ECB, the IMF and the European Commission - following the 2009 economic crisis.

The government of Tsipras, whose leftist Syriza Party stormed to victory in January 25 elections, has tried to renegotiate the terms of the country’s bailout it received in return for imposing harsh austerity measures.

SSM/HMV/GHN