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Greek Debt Crisis Hits NYC Import Businesses Hard

DEER PARK, N.Y. (CBSNewYork/AP) -- The financial crisis in Greece is taking its toll on some businesses in the New York City area.

Kostas Mastoras, who owns Optima Foods in Deer Park, Long Island, and Astoria, Queens, said in his 35 years in business he has never had trouble importing foods from Greece -- until now.

"We are in uncharted waters," he told WCBS 880's Sophia Hall. "We really don't know how to handle it."

Greek Debt Crisis Hits NYC Import Businesses

Mastoras said customers are waiting for olive oil, feta cheese, olives and yogurt.

"It's been 10 days that we're almost out of business," he said. "We can't important anything, and if it stays like this for another 10 days, we're not going to have anything to sell."

Daily business throughout Greece has come to a near standstill as eurozone leaders try to determine the next course of action to save the country from financial ruin.

But talks hit another bump Tuesday when Greek Prime Minister Alexis Tsipras attended a summit of leaders without any written proposal. With Greece's banks just days away from a potential collapse that could drag the country out of the eurozone, Tsipras had been expected to offer up economic reforms in exchange for loans. Instead, his government said it would only present a plan Wednesday.

"You know, there was a promise for today. Then, they're promising for tomorrow," said Lithuanian President Dalia Grybauskaite. "For the Greek government, it's every time 'manana.'"

Tsipras came buoyed by a triumph in Sunday's referendum, where an overwhelming majority of Greeks backed his call to reject the reforms that creditors had last proposed.

But that domestic victory did not appear to give him much leverage in talks with foreign creditors, who know Tsipras needs a deal soon to keep his country afloat. Banks have been shut for seven working days and will not reopen before Thursday, cash withdrawals have been limited for just as long.

So it was with some surprise that European leaders learned Tsipras did not yet have a written proposal for new rescue aid.

"I'm extremely somber about this summit. I'm also somber about the question of whether Greece really wants to come up with proposals, with a solution," Dutch Prime Minister Mark Rutte said.

Greece's 18 eurozone partners have steadfastly said they want to help Greece stay in the currency club but have just as often complained about Greece dragging its feet during months of negotiations.

Even German Chancellor Angela Merkel warned Tsipras he was dancing close to the financial abyss.

"We are no longer talking about weeks, but very few days," she said.

An official from a eurozone nation said that Greece's failure to bring clear proposals to an earlier meeting of finance ministers caused widespread frustration. Greek Finance Minister Euclid Tsakalotos instead made a presentation and discussed key issues.

"Everybody was angry," said the official, who asked not to be identified because he was commenting on a closed meeting.

The eurozone's top official, Jeroen Dijsselbloem, said he hoped the Greek government would make a written request as soon as Tuesday night or Wednesday morning to tap Europe's bailout fund. Once that is in, the eurozone finance ministers would hold a teleconference to discuss the proposals and decide whether they can give Greece more loans.

One big sticking point in the talks is Greece's demand that the terms of its bailout loans be made easier.

European officials are split on the issue, with lead eurozone lender Germany still reluctant. The International Monetary Fund last week called for European states to accept longer repayment rates and lower interest rates on their loans to Greece. Many economists say that Greece's debt burden, at almost 180 percent of annual GDP, is unsustainable for a country its size.

Getting a new rescue deal for Greece is urgent and becoming more so by the day. Greek banks are running out of cash even after the government shut them last week and placed limits on how much depositors can withdraw or transfer.

Normal commerce is now impossible in Greece. Small businesses, lacking use of credit cards or money from bank accounts, were left to rely on cash coming from diminishing purchases from customers. But Greeks are holding on tight to what they have. And suppliers are demanding that businesses pay cash up front.

(TM and © Copyright 2015 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2015 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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