"Britain's attitude to this developing crisis is clear: we hope for the best; but we prepare for the worst, and we stand ready to do whatever is necessary to protect our economic security at this uncertain time," Osborne said, as quoted by Sky News.
According to Osborne, Greece's failure to repay a debt of roughly 1.6 billion euros ($1.8 billion) to the IMF, the first such failure by a developed country, only deepened the crisis.
"The failure of the Greek government to make its scheduled payments to the International Monetary Fund, and the expiry of Greece's financial assistance programme, have served only to add to the developing crisis in that country," Osborne said.
Greek Prime Minister Alexis Tsipras announced a referendum, to be held Sunday, which will allow the Greeks to vote yes or no to international creditor demands for spending cuts and tax rises.
"It is vital now that the current uncertainty is resolved, whatever the Greek people decide, to ensure economic and financial stability across Europe," Osborne warned.
Greece's overall debt to international creditors stands at about $350 billion, of which $270 billion is owed to the European Central Bank (ECB), the International Monetary Fund (IMF) and other eurozone countries.
