Greek meeting proceeds without IMF chief

Eurozone ministers have informally discussed the restructuring of Greece's massive debt, but are reluctant to do so in public, the Dutch finance minister said Monday.

Investors and analysts are increasingly convinced that Greece's debt load is so big that only a restructuring - the delay or reduction of bond repayments - will help it back on its feet.

European officials have so far ruled out that was even being discussed, claiming its impact on markets would be too harsh.

"Of course we discuss all kinds of topics, including restructuring.

But in public, we are very reluctant about discussing and debating restructuring," Jan Kees de Jager said as he arrived at a meeting of European finance ministers in Brussels. He didn't specify whether he favoured such a move.

However, he said that "at the moment, it seems that Greece is not on the right track" when it comes to the implementation of its bailout programme, and that the country "should be first brought back on the right track" before deciding on any new support measures.

Monday's meeting comes in the wake of the arrest of the International Monetary Fund's managing director Dominique Strauss-Kahn, though analysts warned the incident was unlikely to derail any decisions this week.

Strauss-Kahn must remain jailed at least until his next court hearing for attempted rape and other charges, a judge said Monday.

A tired and grim-looking Strauss-Kahn appeared before the Manhattan judge to face charges of attempted rape, sex abuse, a criminal sex act, unlawful imprisonment and forcible touching. The top count is punishable by five to 25 years in prison.

He is accused of attacking a maid who went in to clean his penthouse suite Saturday at a luxury hotel near Times Square. Defence attorney Benjamin Brafman says his client denies any wrongdoing.

Greece has to adopt further economic reforms and austerity measures and properly roll out its promised privatisation programme, de Jager said.

Greece, which first received a €110 billion (US$156 billion) package in rescue loans a year ago, is once again a focus of debate among Europe's top officials as it seems increasingly unlikely the country will be able to re-enter international debt markets next year to start footing part of its bills.

Most economists say Greece won't be able to repay its massive public debt - now at some 150 per cent of economic output - as the economy remains in recession.

Several European officials in recent days have indicated that the country may soon get a second bailout, but that a decision on such a move will likely not come until next month.

Belgian's Finance Minister Didier Reynders said that as long as Greece shows clear willingness to engage in further measures, it should be possible to review its existing programme without getting into restructuring, which he said would have "catastrophic consequences."

- AP