IMF and EU auditors arrived in Athens on Tuesday to audit state finances and progress on bailout conditions, finance ministry sources said, as the new government warned that a bad recession had turned worse.
The audit by inspectors from the EU, European Central Bank and International Monetary Fund is expected to take weeks and comes as Greece's new conservative government takes the full reins of power after winning elections on June 17.
Since the election, the coalition led by Prime Minister Antonis Samaras has has been stuck in limbo, hit by health problems and surprise resignations. The new finance minister Yannis Stournaras is expected to be sworn in on Thursday.
But the man already installed as deputy finance minister warned that the already battered Greek economy would contract by 6.7 percent in 2012 compared with an earlier forecast of 4.5 percent.
Greece suffered an economic contraction of 6.9 percent in 2011 and is now in its fifth year of recession.
"The economic situation is critical," Christos Staikouras said citing alarming figures from recently released data by the state-run Centre of Planning and Economic Research (KEPE).
The disastrous data will certainly be part of the case put to the EU and IMF as auditors of the so-called troika review ministry books over the next few weeks. The heads of the troika mission arrive on Wednesday.
Samaras already asked European Union partners for "necessary modifications" to the conditions of the EU-IMF bailout in a letter sent to Brussels ahead of a summit last week.
And before the election in which the conservative New Democracy party narrowly beat leftist Syriza, the prime minister said he would attempt to revisit terms agreed in Greece's second rescue.
But in the letter to his EU colleagues, Samaras also stressed the new Greek government "is absolutely determined to fulfil its obligations emanating from the recent bailout agreement."
Samaras, who underwent major eye surgery just days after his electoral win, will officially reveal his programme in parliament on Friday, ahead of a vote of confidence in the 300-seat chamber which his coalition can handily win.
But on Thursday, before the opening session of parliament, Samaras will meet the "troika" auditors whose conclusions will determine whether Greece's bailout programme will continue and whether rescue funds may be released.
"The troika inspection is of utmost importance," said Horst Reichenbach, the head of European Commission Task Force for Greece, a mission devoted to overhauling Greece's public administration that stands apart of troika auditors.
Also speaking at at the economic conference, Reichenbach said there were no easy solutions for Greece and he urged the new government to press on with its commitments.
A day earlier ECB executive board member Joerg Asmussen warned the Samaras government that the temptation of "delaying adjustment is risky" and "also not free".
The Greek recession began with the financial crisis of 2008 and turned worse in 2010 with the eurozone debt crisis.