Greek Prime Minister George Papandreou has rubbished speculation of a restructuring programme for national debt, suggesting any such move would significantly damage the credibility of the Greek economy and lead to ongoing financial problems for the country and the economy.

In the run up to EU and IMF inspectorate visits this week, Mr Papandreou suggested that any attempts to restructure debts and repayment schedules would undermine the ongoing efforts of the Greek authorities in tightening up their fiscal performance, while warning that any such moves could lead to the absolute failure of the national banking sector with disastrous consequences.

Following an IMF decision to loan to Greece for a second time in recent months, Greece faces over EUR300bn of national debt which have led to near financial collapse, resulting in widespread civil unrest and rioting.

The Greek government is presently engaged in one of the harshest periods of austerity ever witnessed in the Greek economy, covering tax increases, public sector job cuts and stricter enforcement of tax collection, to help strengthen the often-dubbed ‘sick man’ of Europe.