17 Feb 2012

Tougher monitoring of Greece wanted by EZ

10:10 am on 17 February 2012

Eurozone finance ministers have demanded much greater oversight of Greece's economy in return for a 130 billion euro ($US170 bullion) bailout package.

A decision on the bailout is expected to be finalised on Monday.

Greece's planned budget cuts were scrutinised by ministers in a three-hour conference call on Wednesday.

Afterwards, Eurogroup head Jean-Claude Juncker praised the progress that Greece had made, but saod he wanted more details, including a full timeline for implementing the measures.

The EU and the International Monetary Fund have already demanded that Greece make deep cuts and restructure its economy in return for the bailout.

Germany is also demanding extra cuts of 325 million euro.

Now there are reports the Eurozone group is considering withholding part of the bailout until after elections in April, to ensure Greek politicians are committed to fiscal reforms.

BGC Partners senior analyst Louise Cooper says there are doubts Greece will meet its obligations.

Greece needs to make repayments on 14.5 billion euro in bonds by 20 March, or face bankruptcy.