Finance Minister Euclid Tsakalotos added: “It’s too early to judge the agreement because a lot will depend on what will happen at a political level in Europe”.

Greece’s interior minister said the government is likely to call an early election in the autumn after losing support in parliament for an austerity law.

In Athens, cleaners removed overnight the debris of a pitched battle on the central Syntagma Square outside parliament between black-masked anti-bailout militants and riot police.

Greece has gotten itself into a financial mess over the past few years by spending too much and getting into a lot of debt.

In passing the bill, by 229 votes to 64, Greek MPs took the first step required to begin negotiations on a new bailout package worth 85 billion euros (£60bn).

In an open letter published by local media, 109 members of the 201 Syriza party committee members said the bailout terms were “not compatible with our ideals and the principles of the left”. He has acknowledged the agreement reached with creditors was far from what he wanted and trampled on his pre-election promises of repealing austerity, but insisted the alternative would have been far worse for the country. The first was to accept the deal, the second was a disorderly default and the third was (German Finance Minister Wolfgang) Schaeuble’s plan for a temporary orderly euro exit.

And Syriza’s hardline leftists, lead by Energy Minister Panagiotis Lafazanis, were reported by Greek media as braced to vote against the measures while calling for a return to the drachma.

Prime Minister Alexis Tsipras managed to push through a series of unpopular reforms demanded by the country’s global creditors, while on the streets of Athens anti-austerity protests turned raging as protesters threw firebombs at police. “If I do not have its support, it will be hard to be prime minister the day after”, he told the lawmakers, according to the official. The embattled premier said he took “full responsibility” for signing an accord he did “not believe in, but which I signed to avoid disaster for the country” as it teetered on the brink of economic collapse.

‘I don’t know if we did the right thing.

“If you think blackmail wasn’t real, I’m willing to hear alternatives. Nothing was certain and nothing is”, he told parliament.

Finance Ministry Secretary-General Manos Manousakis also stepped down on July 15, announcing the decision by tweeting a copy of his resignation letter.

Half of the cash from the fund will go to re-capitalize Greece’s shattered banks, while Euro 12.5 billion is set to pay off debts.

On Monday, Greece must repay $4.6 billion to the European Central Bank.

An IMF official said the fund would participate in a third bailout only if European Union creditors produced a clear plan. European Commission head Jean-Claude Juncker confirmed that an EU-wide bailout fund would give Greece a loan to cover it through mid-August.

Germany argued one way for Greece to meet its financing obligations was for it to issue IOUs for domestic needs.