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ATHENS, March 10 (Xinhua) -- Greece is heading towards a cash crunch as early as late March with no financial lifeline from its international creditors, foreign analysts have forecast in recent weeks.


However, Greek government officials insist the situation is under control, dismissing "speculation" about contrary.


So is the dark shadow of a forthcoming Greek cash crunch a rumor or a reality?


For Greek analysts Thiago Motta Italy Jersey , there is no smoke without fire, small or large. The risk is not imagined, but following Monday's latest Eurogroup meeting results, there is an increasing glimmer of hope that Greece is getting back on track and any flames will be extinguished in time.


At the Feb. 20 Eurogroup talks, the newly-elected Radical Left government passed a first test by agreeing to a four-month extension of the four-year bailout to stay afloat.


The major challenge now is to implement the proposed reforms Athens put forward in exchange for the release of a portion of the eurozone tranche without delay.


"Should Greek officials fail to do so Stephan El Shaarawy Italy Jersey , public finances will be put under more strain, the moment of truth will come closer, and Prime Minister Alexis Tsipras will have to rise to the occasion," analyst Dimitris Kontoyannis, an economics lecturer at the City University of New York Stefano Sturaro Italy Jersey , said.


Greece needs to repay about 1.5 billion euros (about 1.61 billion U.S. dollars) to the International Monetary Fund (IMF) later this month. It has already paid off a smaller amount recently and guaranteed that all financial needs would be met in a similarly timely manner with the repayment of the IMF presented as a top priority.


These obligations also included the monthly payment of civil servants' salaries and pensions which were estimated to be a further 2 billion euros.


In the meantime, budget revenues are lagging and the options for Tsipras are limited, according to Kontoyannis.


The Greek central government needs to borrow funds, for example, from the bank deposits of social security funds and state-controlled entities with the lure of a high interest rate and in addition postpone payments to suppliers Stefano Okaka Italy Jersey , which would further strangle the recession-hit economy.


Alongside this, in order to change the climate, Kontoyannis stressed, budget revenues must pick up and some kind of external help should arrive soon.


According to the Financial Times, Greece's cash-strapped Syriza government is pressing the country's social security funds to hand over hundreds of millions of euros immediately to ensure that pensions and civil servants' salaries are paid in March.


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