By Jonathan Davies

Hopes of a deal between Greece and its creditors suffered another major setback yesterday after the International Monetary Fund (IMF) left negotiations and returned home.

IMF spokesperson Gerry Rice said the two parties were "well away from an agreement".

Greece and its creditors - the IMF, EU and European Central Bank (ECB) - has been locked in talks for months in an attempt to release the final €7.2 billion tranche of Greece's €240bn bailout.

Last week, Greece delayed a €300m repayment to the IMF, instead saying to would group together all of its payments due in June into one €1.5bn payment at the end of the month. It is feared that without a deal for the €7.2bn, Greece will default on its loan from the IMF.

The president of the European Council warned that time is 'running out'.

"The Greek government has to be, I think, a little bit more realistic,'' Donald Tusk said.

Slow progress

As IMF negotiators left the talks in Brussels, Greek Prime Minister Alexis Tsipras met with European Commission president Jean Claude Juncker " order to bridge the remaining differences", but it is understood that very little progress was made.

It comes after Mr Tsipras said talks would be intensified after meeting with German Chancellor Angela Merkel and French President Francois Hollande on Wednesday.