ECOFIN: Spain Fin Min: Greece Doesn't Need Aid Now

BRUSSELS -(Dow Jones)- The Greek government doesn't need financial help right now, but euro-zone governments are keeping their options open, Spanish Finance Minister Elena Salgado said Tuesday.

Meeting Monday, finance ministers from the euro zone discussed ways to give Greece financial help, but stopped short of providing a bailout package for the troubled country, saying Athens hasn't asked for money.

"We have had the technical discussions and the instrument will be ready if Greece needs it, which for now it doesn't," Salgado said.

She added that some countries prefer the option of bilateral loans.

Salgado was speaking to reporters ahead of a meeting of finance ministers from all 27 European Union countries, which she will chair.

Greece in recent weeks has moved to trim its budget deficit, estimated to be worth close to 13% of gross domestic product last year. But with investors still concerned about its ability to pay its debts, it is paying interest rates on its new borrowings that are so high they raise doubts about its ability to meet its deficit reduction targets.

Swedish Finance Minister Anders Borg said the Greek government "has been taking concrete decisions that have put them on the pathway towards a credible fiscal restructuring plan."

Sweden is one of 11 EU members that don't use the euro.

-By Nicholas Winning, Dow Jones Newswires; +44 207 842 9498; nick.winning@dowjones.com

(END) Dow Jones Newswires

March 16, 2010 04:22 ET (08:22 GMT)

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