Greece's prime minister says he is optimistic his cash-strapped country will soon reach an agreement with its international creditors, averting a potential default.

Speaking in Parliament Friday, Alexis Tsipras said Greece was doing everything it could to reach a deal with its creditors in Europe and the International Monetary Fund.

He said whether a deal was reached no longer rested on technical issues but on political will among creditors.

Negotiations between Greece, other eurozone countries and the IMF have faltered for months, since Tsipras' radical left government won January elections on promises of repealing austerity measures accompanying the country's bailout.

Time is running out for Greece, which desperately needs an agreement so creditors can release the final 7.2 billion euro ($8.1 billion) installment of its 240 billion euro bailout.