Greece was forced to tap into an emergency account in order to meet a debt repayment of 750 million euros ($845 million) due Tuesday to the International Monetary Fund, a central bank source told AFP.
"That was an initiative by the Bank of Greece's governor to break the deadlock," said the source.
Greece's financial situation is increasingly dire and Finance Minister Yanis Varoufakis warned that his country risked running out of cash in two weeks if no deal was reached by then with its international creditors.
Athens has been locked in negotiations with the European Union, the European Central Bank and the IMF, seeking to unlock 7.2 billion euros worth of remaining bailout funds that the creditors are refusing to release unless Greece signs up to certain economic reforms.
With the two sides standing firm on their positions and the loan servicing payment to the IMF due, the government was informed last week by Greece's top central banker Yannis Stournaras that it could draw 660 million euros from the bank's special account that is meant to be used only in cases of "extraordinary need".
Two meetings with the Greek premier's aides and a consultation with the IMF were held that eventually led the central bank to release the funds, the source said.
The remainder of the sum due to the IMF was scrapped together by the government.
In a separate statement, the government said local authorities and public agencies turned over 600.3 million euros following its decree ordering them to transfer their reserves and help the state cover its short-term financial obligations.