EU finmins to discuss Greek aid

A senior EU source told Reuters ministers would discuss the possibility of providing loan guarantees or bilateral loans to help Athens finance its debts if needed, but said no figure would be put on the amount of help that could be extended.

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 1700 (4:00 p.m. British time).

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

"No political decisions will be made," a German government spokesman said on Monday in reference to the meeting of the Eurogroup. He reiterated that Greece had not asked for financial support and was working to resolve its problems by itself.

Greece this month unveiled a set of new austerity measures, including cutting public sector pay and raising taxes, and a poll on Sunday showed most Greeks believe it is a step in the right direction, despite provoking street protests.

The austerity measures and the euro zone's verbal support have helped ease the premium Greece must offer over benchmark German bonds as it seeks to refinance some 20 billion euros in debt in April and May. But the spread remains high and unsustainable, analysts say.

To further insulate Greece against market pressures and the threat of default, which have dented the value of the euro, finance ministers are looking at what measures could be taken should Athens be unable to finance its borrowing.