Greece has being reported to impose a more intense austerity on its falling economy, as promises have been made to speed up a privatization plan, for a new international bailout to prevent debt default.

Also, the Prime Minister, George Papandreou, on Friday will present his part of the deal, which is a “medium term budget plan”, when he meets the Chairman of the euro zone finance ministers.

The Euro zone officials’ meeting in Vienna, decided in principle, to a new 3-year programme for Greece to be in operation till mid 2014, as it could effectively in topping the 110 billion euro rescue, that Greece agreed on with the European Union and IMF a year ago.

However, several European politicians have disputed that investors who purchased Greek government bonds would have to share the burden of the debt, which may be in the form of reducing the value of their debt.

The European Central Bank is said to have disapproved the idea, troubled that it could trigger a crisis among European banks that hold large sums in Greece’s debt, which may result to a “violent reaction on financial markets far beyond Greek borders”.