ECB reportedly agrees up to €60bn emergency funding for Greece

German newspaper Die Welt, citing sources, reported that the ECB made the decision on Wednesday. The ECB had no comment.

The news comes after the ECB announced it would no longer accept Greek government bonds as collateral for funding. It puts the burden on Athens’ central bank to finance its lenders with tens of billions of euros in emergency liquidity assistance (ELA).

A meeting between German finance minister Wolfgang Schäuble and Greek finance minister Yanis Varoufakis on Thursday was seen as highlighting the gulf in views between the two governments, but also some tentative bridge-building from the Greek side.

"While positions remain far apart, the reality shock since last Friday for Athens is showing effect," said Berenberg economist Christian Schulz.

"The increasing Greek concessions provide a basis to continue talks on, which should avoid an accidental Greek default and euro exit. Face-saving debt relief could be on offer if Greece accepts the reforms and Syriza could complement the programme with its own reforms which would improve Greek 'ownership' of the adjustment programme and thus implementation."

Greece's refusal to accept more bailout loans may result in the country running out of cash on 25 February, Bloomberg reported earlier this week, which cited "two people familiar with the country’s financial position".

This cash crunch was inevitable, the source said, unless the €15 billion limit on short-term borrowing set by Greece’s troika of official creditors is raised.