The powerful international bank lobby IIF warned Tuesday that Greece's newly revamped bailout program still faces large risks as long as the economy continues to contract sharply. "With real GDP likely to decline another 4-5 percent next year after falling 6 percent this year, and further austerity testing social cohesion, risks to the EU-IMF program will remain substantial," the Institute of International Finance said.

"Doubts about debt sustainability will persist until growth resumes and government debt is reduced to a more palatable level," the IIF said in a new global economic forecast. "Continued deterioration in economic conditions restrain (Athens') ability to meet fiscal targets," it added. The IIF, which was deeply involved in arranging Greece's private sector debt writedown in March, raised the warning days after Athens completed a debt buyback that was crucial to the recast European Union-International Monetary Fund rescue program.

Copyright Agence France-Presse, 2012