Greece pays first debt installment early

Greece has reportedly tapped into its emergency IMF account in order to source enough cash to make its first debt repayment, officials have revealed.

According to Reuters officials confirmed 650 million euros were taken from the country's holding fund, money which will have to be put back within "several weeks", and 100 million euros were collected from cash reserves to make today's payment.

It took everyone by surprise when Greece stumped up three-quarters of a billion euros a day earlier than expected. Normally, these things go to the wire, because cash really is in very short supply in the country.

Perhaps it was a signal to the ministers gathering here that Greece really is trying to sort itself, that it wants to negotiate in good faith.

Now, that may be, but it's only one of the hurdles that the country faces this summer - a long list of bills that it has to pay. It needs a breakthrough here.

Today I think it inched closer to that, but tonight Greece is still in a precarious position.

Greece's Finance Minister Yanis Varoufakis laid out the hope that a deal could be secured "within days" though his partners in the eurozone appeared more sceptical. Finance ministers have said that Greece appears to have made some progress in bailout talks with its European creditors but the chances of an immediate deal look slim.

Greece, which is facing a liquidity crunch that could see it go bankrupt within weeks and possibly leave the shared euro currency, has to secure a deal with creditors to get a delayed bailout loan - worth 7.2 billion euro (£5.2bn) - that will help it pay upcoming debts. As they arrived for a meeting in Brussels, finance ministers from the 19-country eurozone said progress has been made since their last such meeting in April ended in acrimony.

Two EU officials have said that Euro zone finance ministers are set tol issue a short statement on Greece. They are expected to welcome progress made so far with creditors but will also warn that more time and effort is needed to overcome difficulties in talks with creditors, the officials told Reuters.

In a statement, one said: "There will be a short statement and it will refer to the progress made and the work ahead, welcoming the Greek's intention to accelerate their work."

Another official said that "more time and effort is needed to bridge the gaps" in talks to avoid a Greek default.

Greece is demanding Eurozone finance ministers to acknowledge progress in difficult negotiations on a cash-for-reform deal, which the country hopes will unlock short-term borrowing to ease its acute financing crunch.

However, sources familiar with European Central Bank thinking said there was still too little advance on key issues and too much uncertainty for the bank to allow the Greek government to sell more short-term Treasury bills.

Greece is due to make a crucial 750 million euro debt repayment to the International Monetary Fund on Tuesday and is running out of money to keep paying wages and pensions.

But government spokesman Gabriel Sakellaridis told reporters Athens was not linking the IMF payment to the outcome of Monday's Eurogroup meeting in Brussels or considering any "plan B".

"What it wants from today's Eurogroup is to have on record that considerable progress has been made in the talks," he said.