Greece: more aid needed?

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Greece: more aid needed?

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Europe’s Economic and Monetary Affairs Commissioner Olli Rehn says a new plan to help Greece with its massive debts is being prepared but that it is ‘‘premature to specify any number”.

Rhen said a decision will be made after Brussels hears back from EU and IMF official currently in Athens.

But Greece denied a report it was discussing a new 60 billion euros bailout with international lenders and after chairing a cabinet meeting Prime Minister George Papandreou remained upbeat about his country’s financial future. He told reporters: “We can guarantee not only our exit from this crisis, but also a viable economy, viable development, a Greece with a just society, a Greece that can rely on its own strengths and believe in itself.”

But the figures tell a grim story with Greece predicted to owe 152 percent of its annual gross domestic product by the end of this year, the official deficit is supposed to fall to 7.4 percent of GDP. Ratings agencies continue to fear default.

Some ECB policymakers are warning against restructuring Greece’s debt.

One of them, Austria’s Ewald Nowotny, said he favours giving Greece more time to repay its aid and that issuing new loans would have massive consequences for Greek and European banks.