Playing his cards close to his chest, Greek Finance Minister George Papaconstantinou said he would not be seeking eurozone help to reduce the country's high budget deficits, though he admitted that the agreed aid facility was "a milestone for Europe and Greece".
A member of Papaconstantinou's staff told EurActiv that Greece "will not be asking for any intervention from the EU," echoing the minister's determination not to require help from the euro zone.
"We have the ultimate responsibility to put the country on track and correct the errors and omissions of many years," said the finance minister after meeting the Greek press in Athens today (9 April).
However, Papaconstantinou appears to be stuck between a rock and a hard place to raise money for the country's dwindling budget.
Manufacturing output fell by 9.2% in February compared to last year, and economists predict that the country will not hit the EU's 4% deficit reduction target before the end of the year.
Markets unconvinced by EU rescue deal
Financial markets appeared unconvinced by a recent eurozone deal on Greek insolvency, as Greek bonds are frantically being sold and spreads are widening.
Greece needs to borrow about €11 billion before the end of May to cover maturing debt and interest payments.
Sources close to the finance minister told the press he was unlikely to turn to capital markets to raise funds for the beleaguered economy while interest rates remained too high.
The European Commission confirmed today that although eurozone countries were standing ready to deploy loans to Greece, "details" like interest rates would be "worked out later".
Interest rates
Behind the scenes, eurozone countries appear to disagree on the size of the interest rates, as EU officials intimate that Germany and the Netherlands are worried that a favourable rate for Greece would create a moral hazard.
Analysts argue that the risk premiums of the country's government bonds are unlikely to go down significantly without assurances from the euro zone that the country can borrow from the bloc at a reasonable rate.
Meanwhile, Greek news reports adopted a decidedly different tone to those in the EU's Brussels headquarters, as the country's papers praised a 40% reduction in deficits in the first three months of 2010.
However, the situation in the country's banking sector is not one of confidence.
According to press reports, wealthy Greeks and corporations based in Greece are continuing to withdraw large amounts of money, while the country's banks are being kept afloat by the European Central Bank and a national rescue fund.
