EU exec to put Greek plan to finmins

Ministers were expected to discuss the possibility of providing loan guarantees or bilateral loans to help Athens finance its debts if needed, but officials signalled no figure would be put on the amount of help that could be extended.

European Monetary Affairs Commissioner Olli Rehn confirmed the Commission had succeeded in drawing up proposals for a mechanism that could be put to a meeting of the euro zone's 16 finance ministers in Brussels.

"I would expect that Europe would endorse the assessment of the Commission on Greece's bold set of measures which would mean that Greece is on track to meet the 4 percent target of deficit reduction this year.

"We will also discuss how to safeguard financial stability in the euro area as a whole," he said. "The Commission is ready to table a proposal for a European framework for coordinated and conditional assistance."

The 16 countries that use the euro single currency have provided strong verbal and political support to Greece since its debt and deficit problems exploded three months ago, but have been unable to agree on the need for financial aid.

Germany, Europe's biggest economy and the country that would be the linchpin of any support, is reluctant to bail out Greece, saying the country's priority must be to get its own finances in order and make deep structural adjustments to rein in spending.

The 16 finance ministers gather in Brussels from around 1500 (2:00 p.m. British time) for a meeting that begins at 1700.

Market prices for Greece's debt rose on hopes of a more detailed commitment by the meeting, but analysts said a failure to do so could spark more selling.

"No political decisions will be made," a German government spokesman said of Monday's meeting.