Greek Prime Minister Alexis Tsipras has fended off speculation in German media outlets that Athens could be running out of cash.

Following a meeting with Finance Minister Yanis Varoufakis, Tsipras told reporters that "no problem with liquidity" was facing the country.

This comes after experts in Germany raised doubt that Greece would be able to pay salaries end pensions in the end of March.

European Parliament President Martin Schulz also added fuel to the fire, telling EurActiv that Greece "urgently needs money" and has to convince the Eurogroup and the European Central Bank that it really intends to carry out reform.

But Tsipras warned on Monday that the country would "not accept any return to austerity."

Europe's first leftist government, which swept to power in end-January on an anti-austerity ticket, is now in talks with internatonal lenders on the extension of its bailout program, despite Athens' earlier assurance it will not heed EU calls.  

The country's Finance Ministry later announced that the next installment of EUR 588 M, owed to the International Monetary Fund, would be repaid on Monday.

The latest developments come against the background of heightened tensions between the Athens and Berlin, with a recent video of Varoufakis in which he is seen showing the finger at Germany and its government
Varoufakis, however, describes the footage as "montage".

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