Greek bailout on a tightrope—again

Greece's third bailout is back in the hands of euro zone finance ministers, who are meeting Friday to discuss whether to go ahead with the deal—or delay it.

The baton has been passed on to Brussels after the Greek government, which had debated the reforms that need to be introduced to secure the much needed funds through the night, secured enough votes to pass the bailout bill.

However, further uncertainty was heaped on the bailout process with reports from Reuters that left-wing prime minister Alexis Tsipras seeking a vote of confidence from the parliament after August 20.

Greece's parliament building
Amos Chapple | Lonely Planet Images | Getty Images
Greece's parliament building

The Eurogroup of finance ministers met in Brussels on Friday to debate the latest developments in the latest 85 billion euro ($94.8 billion) bailout program for Greece.

"Hopefully, by the end of the evening we'll have a positive outcome," Eurogroup President Jeroen Dijsselbloem told reporters ahead of the meeting.

According to Reuters, a Greek official said Friday that European officials had recommended that euro zone finance ministers disburse an initial 23 billion euros in a first aid tranche to Greece under the new bailout deal.

Dijsselbloem added that debt sustainability was, "still a major point of concern, certainly for the IMF (International Monetary Fund)."

"Hopefully we can make sure that it (the debt) is sustainable by then (October) and give further guarantees, if necessary, so that the IMF can come on board in October, because that's very important to all of us," he later added.

Kostas Chrysogonos, a Syriza member of the European parliament (MEP), told CNBC Friday that he hoped the deal would be completed at the meeting.

"It's obvious we have to sign (a bailout deal) and we have to implement this agreement," he said.

A confidence vote was the last thing Greece needed right now, he added, so soon after Tsipras was elected in January.

"I'm hopeful that many of the dissenters will resign their parliamentary seats…and the confidence vote will be enough to gain the confidence of the parliament for this government. It's obvious that the last thing that we need right now is a general election, a country that stands at the edge of default cannot afford the luxury of having a second general election within eight months."

Although the country and its international lenders and those overseeing the program – the European Commission, European Central Bank, European Stability Mechanism (ESM) with input from the International Monetary Fund (IMF) –have agreed technical details, a political agreement in the euro zone by member state governments is now necessary before any aid is release.

But that is easier said than done with tensions running high both in Greece and Germany, Greece's largest euro zone lender, over the bailout. This raises the possibility that the bailout deal could be delayed and Greece issued a bridging loan to tide it over – it has a 3.2 billion euro payment due to the ECB on August 20.

Syriza split?

In Greece, members of parliament debated the third bailout package through the night after a long delay to the proceedings due to procedural objections saw the plenary session only get underway at 2am local time (midnight London time). The vote on the bailout deal finally started at 7.30 London time with the government securing enough votes - 222 votes to 64 - to get the bailout approved.

Tensions were running high in the Greek parliament, with high profile members of the ruling Syriza party, including former finance minister Yanis Varoufakis and parliamentary speaker Zoe Konstantopoulou, opposing the deal which involves more austerity, spending cuts and reforms.

After the bailout was voted through the Greek parliament, Reuters, quoting a government official, said that Tsipras will seek a confidence vote in the Greek parliament after the August 20 deadline for payment to the ECB. A government spokesman told CNBC that he could not confirm the Reuters report but was expecting a statement shortly.

Read MoreDéjà vu: Is Germany about to scupper Greek bailout?

Rebellion has been growing in the ranks of Tsipras' party from a far-left faction led by former energy minister Panagiotis Lafanazis, threatening to break away from the party.

Speaking on Friday morning ahead of the vote, Tsipras said the bailout agreement was a "necessary choice for us," according to Reuters. He also said he didn't regret compromising with lenders in July, when he capitulated to lenders demands on reforms in order to prevent more financial crisis in Greece, which had by then implemented capital controls and looked set to exit the euro zone without a deal.

Appeasing Germany

Greece is not the only country where trouble is brewing over yet another bailout. The German Finance Ministry has said it wants the Eurogroup to address its unanswered questions about the bailout program on Friday, namely, whether the IMF will contribute financially to the deal. German officials have repeated over the last few days that IMF participation is crucial.

For its part, the IMF answered that question in a statement released on Thursday night, reiterating its stance that it would "make an assessment of its participation in providing any additional financing to Greece once the steps on the authorities' program and debt relief have been taken, expected at the time of the first review of the ESM program."

Debt relief is a big problem for Germany, however. It has vehemently opposed any kind of debt relief fearing that it will set a precedent for other indebted euro zone neighbors. Nonetheless, economists think some kind of debt relief is inevitable.

Read MoreThorns in the side of the Greek bailout deal

David Owen, chief European economist at Jefferies International, told CNBC Friday that debt sustainability was still not visible in Greece and "we know there will have to be some kind of debt forgiveness."

"Maybe the Germans' plans is that we get them (Greece) going and don't write off any debt or give any debt forgiveness now but then maybe, maybe in a few months down the line if they stick to the program we can extend (debt maturities) and pretend further," he said.

If the bailout is not approved by the Eurogroup, it could decide to grant Greece 6.04 billion euros in bridge financing, according to German newspaper Bild, citing a European Commission proposal for the meeting.

Greece's leader Tsipras said Friday morning that that would mean a "return to a crisis without end" for Greece but it may be the only way to appease Germany.

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