Analysts following the talks between the two sides explained what could happen next.
"The lenders want to see a menu of credible and specific measures to be legislated upfront and with automatic triggers (should Greece fail to meet fiscal targets by 2018)," Wolfango Piccoli, co-president of risk consultancy Teneo Intelligence said in a note on Wednesday.
"This is important, not least because without this contingency package, the lenders will hardly be willing to discuss the prospects of debt relief demanded by Athens and – crucially – the IMF, which the creditors are eager to keep on board."
Despite the IMF being on Greece's side when it comes to debt relief (it has consistently said it would not take part in a third bailout package without debt relief discussions for Greece, which have yet to be held due to the ongoing talks over reforms and targets), Athens accused the IMF on Wednesday of undermining negotiations on the next release of bailout funds that the country desperately needs.
Funds can only be released when lenders conclude a "review" of Greece's commitments to economic reforms. But a Greek government spokesperson said the IMF's demands went beyond the initial bailout deal agreed in 2015.
"The legislation of 'contingent' measures — as insisted on by the IMF — moves outside the boundaries of the Greek constitution and outside the boundaries of the European legal system," Greek government spokeswoman Olga Gerovasili said in a press briefing on Wednesday, according to the Greek Reporter.
The "fiscal correction" mechanism proposed by the Greek side, by contrast, met all the conditions raised by the Eurogroup last week in terms of being automatic, objective and reliable, while it was also legal to vote into law, she added, according to a report yesterday on Greekreporter.com.