Greece has bought itself some time by bundling together its payments to the IMF.
It plans to hand over the 1.6 billion euros it owes this month to one of its main creditors at the end of June.
“We are effectively a little bit past midnight, but everybody has agreed to stop the clock so that the country and the creditors have a couple of more weeks to trash out the details of a deal, if there is one,” said Daniel Gros of the Centre for European Policy Studies.
Lenders are urging Greek Prime Minister Alexis Tspiras to push on with pension cuts and labour market reforms, which some experts say are needed.
“The government has to bring its party behind the reality that further adjustment is necessary. Because the government hasn’t been able to keep its budget in order for the first six month of this year. So something has to be done. If they refuse to do that they can only default,” said Gros.
Despite a refusal to budge by Athens on the cash for reforms proposal, the government says its aim is to stay inside the eurozone.