Greek and European Central Bank officials on Wednesday rejected a scenario of restructuring the Greek debt, saying that it would only worsen rather than solve the current crisis.
Greek Finance Minister George Papaconstantinou and European Central Bank board member Juergen Stark made the comment while attending an Economist forum here.
"In the current complex international environment, there are no magic solutions, such as restructuring," said Papaconstantinou, addressing the event.
The only way out of the debt crisis is through the painful, but necessary austerity and reform program launched last year to slash deficits and return to growth, argued the Greek official.
In the coming days the Greek government is due to examine a new package of measures to support ongoing efforts to reduce the budget deficit to 7.5 percent of GDP by 2012, added Papaconstantinou.
"A debt restructuring will lead to catastrophe, since it will slash the capital of Greek banks," Stark said, calling for the full implementation of the stability and growth program instead.
The Greek Finance Ministry announced on Wednesday the appointment of financial advisors for a series of privatizations of state-controlled companies and real estate.
The appointed advisors, including the National Bank of Greece, Deutsche Bank, Credit Suisse, HSBC, BNP Paribas, Rothschild, Barclays, Citigroup and Ernst and Young, will advise Athens on the sale of stakes in the Greek state gambling company, the natural gas enterprise, railways, motorways and other assets.
Greece aims to raise at least 50 billion euros (71.22 billion U. S. dollars) through this privatization program over the next four years to reduce its debt, starting from this summer. According to the latest timetable the target is to raise the first 15 billion euros (21.36 billion U.S. dollars) by 2013.