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Official: account to ensure Greek debt service

By Sarah Dilorenzo

Associated Press

Published: Monday, Feb. 20 2012 10:00 p.m. MST

Greek Finance Minister Evangelos Venizelos, second right, speaks with from left, Belgium's Finance Minister Steven Vanackere, French Finance Minister Francois Baroin and Greek Prime Minister Lucas Papademos during a round table meeting of eurozone finance ministers at the EU Council building in Brussels on Monday, Feb. 20, 2012. Eurozone governments will likely approve on Monday a long-elusive rescue package for Greece, saving it from a potentially calamitous bankruptcy next month, senior officials said. But finance ministers meeting in Brussels will have a few last issues to wrangle over, such as tighter controls over Greece's spending and further cuts to the country's debt load.

Yves Logghe, Associated Press

BRUSSELS — EU economic affairs commissioner Olli Rehn says Greece's compliance with the terms of a new bailout will be ensured by a separate account containing enough money to service its debt for three months.

That close monitoring was demanded by some members of the eurozone who are frustrated that Greece has not always enacted painful reforms and budget cuts on time.

The account is part of a deal agreed to in the early hours of Tuesday to give Greece another €130 billion ($170 billion) in rescue funds to avoid a default next month. Officials say the deal would bring Greece's debts down to the maximum level considered sustainable, by, in part, asking private bondholders to take significant losses on their holdings.

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