Frenzied attempts across Europe to bailout Greece and save it from a potentially devastating default on its debts were dealt a fresh blow on Tuesday night when a meeting of the finance chiefs of the 17 euro countries to discuss Greece's second multi-billion bailout on Wednesday was called off.

The decision was made after Athens failed to meet a deadline to deliver on several demands made by its partners in the currency union.

Eurozone countries appear to want much tougher guarantees now from Athens before giving it an extra 130 billion euros in rescue loans.

The loans would come on top of 110 billion euros granted in 2010.

Wednesday's meeting was expected to give the greenlight for a bond-swap deal with private creditors designed to slice some 100 billion euros off Greece's debt.

The deal has to be finalised by March 20 when Greece faces a 14.5 billion euros bond redemption that it cannot pay.

Tensions between Athens and other European capitals have hit new highs this week. Although the European Union is officially still warning of the "far-reaching dangers" of a default by Greece, some politicians have downplayed the effects of such an event.

Athens and the eurozone have spent much of the past two years working to avoid a default - and Greece says it simply can't take much more.

"Greece has made all the efforts that it needed to do, and the people cannot take any more," Greece's Public Order Minister Christos Papoutsis said recently. "The government is making superhuman efforts and we have reached the limits of the social and economic system. From now on, Europe has to take the responsibility."

Image: Getty