Eurogroup president Jeroen Dijsselbloem urged Greece yesterday to hold elections as soon as possible to avoid delays in implementing a third bailout package.

Greece made a small interest payment to the International Monetary Fund (IMF) yesterday, but European lenders dashed hopes for a cash-for- reforms deal before a more crucial, bigger instalment Athens must pay next week.

Work is under way on a new deal between Greece and its troika creditors after both sides agreed to a number of compromises.

Eurozone finance ministers will get their first look at Greece’s plan for a new deal tomorrow but will refuse to negotiate just yet.

Europe showed a willingness yesterday to give Athens more time to pay its debts, but little sign that it would yield to the new Greek government’s demands for debt forgiveness.