He said the chances of a positive resolution to Greece's debt crisis are "sadly diminishing" after Greek voters' rejection of recent creditor proposals and that the economic situation in Greece will deteriorate quickly without a new push for stability.
Osborne urged the Greek government and its European creditors "to be open to new offers and to be ready to sit round the table."
Osborne also said several thousand U.K. citizens in Greece will continue to be paid their pensions.