Juncker hints at Greek restructuring

The head of the group of euro zone finance ministers Jean-Claude Juncker has said that Greece needs a "soft, voluntary restructuring" of its debt.

Mr Juncker's comments, which will be closely monitored in Ireland, were made during a radio interview with Inforadio Berlin Brandenburg.

During the interview, Mr Juncker said there should be no total restructuring of Greek debt but added that private lenders need to participate in a fresh aid program on a voluntary basis.

"There will be no total restructuring," he said. "The governments are agreed on that, ECB support for such an option could not be obtained."

"There must be a soft and voluntary restructuring,"

Mr Juncker's comments echo those of German finance minister Wolfgang Schaeuble who called yesterday for a “soft” restructuring of Greek debt despite criticism from the European Central Bank.

The ECB is opposed any kind of restructuring of Greek debt and ECB chief Jean-Claude Trichet said as recently as Thursday that he will continue to resist any move to restructure Greek debt.

Mr Trichet did not rule out support for an initiative in which Greek creditors would voluntarily renew or roll over debt as it fell due but said it was not the ECB’s intention to roll over its own holdings if such an initiative went ahead.