WASHINGTON (AP) -- President Barack Obama says the Greek financial crisis is of "substantial concern" but should not prompt "overreactions."

A man holds a European Union flag during a rally by supporters of the YES vote to the upcoming referendum, at Syntagma Square in Athens (AP Photo/Daniel Ochoa de Olza)

Obama says he doesn't believe the crisis will deal a "major shock" to the American financial system, but adds that it's painful for the Greeks and could affect European economic growth.

He says that, in turn, could have some ripple effects in the United States, such as reduced trade.

Greece and its European creditors were assessing a last-minute proposal Tuesday by Athens for a new 2-year rescue deal submitted hours before the country's international bailout program expires and it loses access to billions of euros. Greece owes international lenders about $1.9 billion by the end of Tuesday but doesn't have the money to pay.

Obama commented Tuesday at a White House news conference.


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