Greece makes $224M payment amid 'nail-biting' talks

Greece reportedly made a 200 million euro ($224 million) interest payment to the International Monetary Fund (IMF) on Wednesday, as the "nail biting" continued over the future of Greece's bailout program, reforms and, most importantly, its ability to avoid defaulting on its hefty debt burden.

A Greek official told Reuters that the multi-million euro payment to the IMF was "done," although CNBC was unable to verify the report after contacting the Greek government.

While the country may have scrabbled enough cash reserves this time to pay the IMF—which is only one of its lenders—there are doubts whether it has enough money for a 750 million euro payment due to the transnational body on May 12.

Read MoreFears of Greek dispute between EU, IMF hit markets

Nail biting

Athens, Greece
Scott E. Barbour | Digital Vision | Getty Images
Athens, Greece

Robert Kuenzel, director of euro area research at Daiwa Capital Markets, said in a note Wednesday that further repayments due to the IMF meant "the nail biting over Greece looks set to continue."

Contentious negotiations over a reforms-for-loan deal between Greece and its international bailout supervisors are still ongoing, meaning an immediate cash disbursement seems out of the question, Kuenzel said. Greece will again have to "fend for itself in meeting the 750 million repayment due to the IMF."

Read MoreEurogroup: No Greek deal by Monday, but it will get done

"(The repayments) no doubt put further strain on the Greek government's already dire cash situation," he said. "Meanwhile, reform negotiations…will probably leave a large chasm between Greece's reform proposals and creditors' demands."

Greek Finance Minister Yanis Varoufakis sounded a positive note on Tuesday, saying enough progress had been made to make for "fruitful discussions" at the next meeting of euro zone finance ministers (called the Eurogroup) on May 11, according to Reuters.

Read MoreVaroufakis' first 100 days: All style, no substance?

However, Kuenzel was unconvinced.

"Notwithstanding yesterday's claim by Greece's vociferous finance minister of 'great progress' having been made in talks this week, the proverbial bones of contention (labor market and pension reforms, as well as fiscal targets) appear too politically sensitive for a comprehensive agreement to be reached in time for next Monday's Eurogroup," he said.

Progress or no progress?

In dire need of funds, the Greek government has already ordered local authorities to transfer their cash reserves to the central government, prompting questions over where it might turn to next.

In the meantime, Greece is in ongoing talks with its lenders and the bodies overseeing its bailout program, the IMF, European Central Bank and European Commission, over reforms and financial aid.

Progress appears to be slow, however, and without reform lenders will not release a last tranche of bailout aid worth 7.2 billion euros that Greece desperately needs now to stave off bankruptcy.

Reports have surfaced over the last few days signalling split views among the creditors over whether Greece needs a debt haircut (as the IMF reportedly believes) or not (a stance European officials are keen to maintain as a debt haircut could set a precedent for other euro zone countries).

Signs of diverging opinions over Greece could hamper negotiations, one market analyst said.

"With proceedings already difficult and fraught with respect to Greece's so-called red lines, the last thing markets need to hear about are divisions between the EU and IMF with their own differing red lines, which makes it that much more difficult to envisage any form of positive outcome in the coming days," Michael Hewson, chief markets analyst at CMC Markets, said in a note Wednesday.

- By CNBC's Holly Ellyatt, follow her on Twitter @HollyEllyatt. Follow us on Twitter: @CNBCWorld