EU's Rehn: Greek debt restructure 'not in plan'

(NEW YORK) - The European Union's top economic policy envoy Olli Rehn insisted Wednesday that restructuring Greek debt was not part of a plan to fix Athens' finances.

Hoping to allay fears that Greece's dire economic situation could push the country to default on its debts, the European Commissioner told an audience in New York that "restructuring is not part of our plan."

The European Commission, the European Central Bank and the International Monetary Fund are currently in talks to release a fresh batch of funding to keep Greece afloat.

With Greek finances still on the rocks and private lenders demanding sky-high risk premiums for lending to the country, Athens desperately needs more cash from its peers.

"Despite significant achievements in reducing the fiscal deficit since spring last year, Greece is not likely to be able to gain access to the market financing by early next year," Rehn admitted.

He added that "difficult decisions" would be needed this month.

But the troika of institutions has warned that another payout is not assured unless Athens undertakes further reforms.

With the Greek bailout deeply unpopular in some European countries, most notably Germany, speculation has mounted that the Europe may be considering forcing Greek bond holders to accept reduced or later payments.

Rehn discounted such a move and said it would do little to help Greece's financial plight.

To restructure "just like that," he said, "will not solve fundamental problems of Greece."