UPDATE 1-Euro zone states consider Greek restructuring-report

(adds background)

BERLIN, April 6 (Reuters) – Some euro zone governments are
concerned highly indebted Greece will not be able to refinance
itself and may have to restructure its debt, the Financial Times
Deutschland reported on Wednesday.

The newspaper said representatives of several euro zone
governments told the paper that a restructuring could no longer
be ruled out. The business daily did not name its sources or the
countries involved.

“An extention and top-up of the aid package would not be
politically possible. Then, consequences would have to be
drawn,” the paper quoted a source in the finance ministry of a
large euro zone country as saying.

It also quoted an advisor to the leader of an EU state as
saying: “We must have a plan B ready” for the possibility Greece
requires more financial assistance.

Greek and European officials have long insisted that Greece
can recover without restructuring its debt, and that even
discussing a restructuring now would be counter-productive by
damaging banks across Europe and causing panic in markets.

On Saturday, the International Monetary Fund denied a report
in German magazine Der Spiegel that it was privately pressing
Greece to restructure its debt.
(Writing by Brian Rohan; Editing by Toby Chopra)

UPDATE 1-Euro zone states consider Greek restructuring-report