Greece has received another financial lifeline to prevent bankruptcy, with the eurozone and the International Monetary Fund agreeing to a $9.5 billion deal that spares the country from defaulting on debt in August.

European finance ministers have provided $4 billion, but the deal comes with strict bailout terms, including cutting thousands of public sector jobs, raising taxes and selling state assets.

It is not the first time the bailout has been topped up and it probably will not be the last.

With the Greek crisis in its fourth year, patience is starting to wear a bit thin. But the European Central Bank, the European Commission, and the IMF, who met in Brussels overnight, are continuing to do what it takes to stop Greece defaulting on its debt repayments.

Greece will receive half the additional money now and the rest in October.

Already the austerity has been so deep that the national broadcaster - the equivalent of the ABC - has been taken off the air.

Swedish economist Frederik Erixon says under the strict bailout terms, Greece is set to go even deeper into depression.

"If you're trying to increase taxes, if you're trying to cut expenditure at a time when you are in this depression cooker - as Greece is right now - you're only going to make things worse," he said.

"You're going to make the economy contract even more, and when the economy contracts, the deficit goes up, becomes even higher. You need to go into a new round of negotiations with your lenders because you're not fulfilling the performance criterias that you had.

"So it becomes an all-round charade game, and of course that's not very flattering, neither for Greece nor for the lenders."

Germany has been supportive of this latest top-up and finance minister Wolfgang Shauble says Greece is on the "right track".

But Germany has been providing much of the bailout money, and that will be a big issue for voters as chancellor Angela Merkel campaigns for re-election in September.

More pressure on Greece might force it to exit the Euro and that would spark a chaotic fracturing of the entire eurozone, which has the potential to create a big global shock.

That would have ramifications right around the world, including in Australia.

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