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Athens - Greece's finance minister insisted on Wednesday that his country's crushing debt was "viable" and that Athens still intends to raise money on markets early next year despite currently exorbitant rates.
"The Greek debt is viable and its viability depends on how the (reforms) programme is run," Finance Minister George Papaconstantinou told reporters.
"Our aim is still to access markets in early 2012 to borrow at logical rates," he added.
There has been growing speculation that Athens must restructure its debt to ease its repayment schedule, with its obligations exploding to €340bn.
Official denials from the Greek government, the European Commission and the International Monetary Fund have done nothing to quell the speculation.
Papaconstantinou again on Wednesday dismissed the "cacophony" surrounding a possible debt restructuring, arguing that such a move "carries enormous dangers for the Greek economy, the banking system, households and businesses" and risks for Europe as a whole.
Several members of Papaconstantinou's own party have urged the government to consider the option and last weekend former prime minister Costas Simitis, who oversaw the country's eurozone accession a decade ago, added his voice to calls to roll over Athens' crippling debt.
"A well-prepared restructuring will essentially improve our position," Costas Simitis said in an interview with To Vima weekly last weekend.
On Tuesday, Greece raised €1.625bn in a sale of three-month treasury bills but at a high cost.
The rate of return on Greek benchmark 10-year government bonds jumped above 14% on Monday for the first time since the eurozone was created, reflecting deepseated doubts that Athens can stabilise its finances.
Such levels are unsustainable for a Greek economy gripped in deep recession, fuelling talk that Athens may have to throw in the towel.
Papaconstantinou reasoned that market volatility surrounding Greek bonds is likely to improve after the EU rescue programme for Portugal, due by mid-May, is finalised.
