Greece on Wednesday raised 1.14 billion euros ($1.27 billion) in three-month treasury bills in a bid to stave off a damaging default that could be weeks away, the debt management agency said.

The agency said it had accepted nearly the entire amount of 1.138 billion euros offered by creditors, paying a steady interest rate of 2.7 percent.

Four months of deadlock between Greece's new radical Syriza-led government and its EU-IMF creditors over the reforms needed to release a final 7.2 billion euros in bailout funds has led to concerns Athens is running critically short of cash and may soon end up defaulting, possibly setting off a messy exit from the euro.

Finance Minister Yanis Varoufakis has warned that the country risks running out of cash within two weeks if no deal was reached with its creditors to unlock the last tranche of aid funds.

Around 1.5 billion euros are due to the IMF in June and then more than six billion euros to the European Central Bank (ECB) in July and August.