Eurozone finance ministers are meeting in Brussels today to examine a list of reform proposals submitted by Greece which could trigger the release of funds the country needs to repay a significant IMF loan this month.
However, Greek finance minister Yanis Varoufakis warned that the far-left government could call a referendum or fresh elections if its reform proposals were rejected by the Eurogroup of finance ministers.
Last month eurozone finance ministers reached an 11th-hour agreement to extend Greece's bailout.
The deal meant that Greece would be entitled to €7bn in bailout funds, but only by the end of April.
However, because of falling tax revenues Greece could run out of cash sooner.
The government was therefore asked to submit a detailed list of proposals which would foresee some of the funds being released early.
The letter sent to Eurogroup chairman Jeroen Dijsselbloem, however, has already prompted fears of a fresh stand off between Athens and the eurozone.
One suggestion, which has reportedly prompted derision in some eurozone capitals, is that tourists could effectively act as spies by reporting tax evasion to the Greek authorities.
In an interview with an Italian newspaper, the Greek finance minister warned that the government could call a referendum or fresh elections if its proposals were rejected by eurozone finance ministers.
A finance ministry spokesman later clarified that this would be a referendum on the reforms the country was being asked to carry out, and not on membership of the euro.
Minister for Finance Michael Noonan said that there had been "logistical" progress on the Greek government's troubled reform process.
He said there had been a meeting between Greek officials and the EU-IMF institutions this morning at which it was agreed that the "institutions" would be "centred" in the Greek deputy prime minister's office in order to carry out technical work on the country's reform proposals.
A €7.2 billion tranche of the second bailout is due at the end of April, but Greece wants to access some of that cash early due to a tax shortfall and a number of debt repayments to the IMF.
Mr Noonan said that the original proposals submitted by Athens, and discussed by ministers via teleconference on 24 February, were "sufficiently comprehensive" to provide a menu of solutions to arrive at a solution before the end of April.
"No proposals have been taken off the table. A second letter [sent by Mr Varoufakis to Mr Dijsselbloem] has been a prioritisation of the proposals in the first letter, but it wasn't meant to drop any proposals," he said.
Mr Noonan said the Irish Government was keeping in close touch with the situation and he said "we wish the Greek authorities well."
He added: "We have our red lines. We don't even want talk of a Greek exit to be on the menu of solution and we don't want write-downs."
