BRUSSELS (MNI) - European leaders are more likely to choose a lending facility to support heavily indebted Greece instead of opting for balance of payments support or a common euro zone bond, a European Union official said on Thursday.
The official, who made the comments on the sidelines of a summit of European Union leaders in Brussels, said the most likely solution for Greece was a lending facility, which each country in the 16 nation euro zone would make a contribution to, based on its percentage contribution to euro zone gross domestic product.
All 16 countries within European monetary union would contribute to that lending facility he said, with no exceptions.
The source - who is close to discussions in the Eurogroup - said there was "no talk" of balance of payments support or loans similar to those given by the European Commission to troubled EU members including Romania last year.
Asked if Eurozone leaders were considering offering a common eurozone bond to raise cash for Greece, the source, said:
"No, not yet, the time is not right."
Earlier Thursday, the President of the European Council Herman Van Rompuy said that the EU was ready to take "coordinated measures" if needed but didn't offer any firm support, underlining that Greece had not yet asked for financial help.
"Euro area members will take determined and coordinated action if needed to safeguard stability in the euro zone as a whole," Van Rompuy said.
The official, who made the comments on the sidelines of a summit of European Union leaders in Brussels, said the most likely solution for Greece was a lending facility, which each country in the 16 nation euro zone would make a contribution to, based on its percentage contribution to euro zone gross domestic product.
All 16 countries within European monetary union would contribute to that lending facility he said, with no exceptions.
The source - who is close to discussions in the Eurogroup - said there was "no talk" of balance of payments support or loans similar to those given by the European Commission to troubled EU members including Romania last year.
Asked if Eurozone leaders were considering offering a common eurozone bond to raise cash for Greece, the source, said:
"No, not yet, the time is not right."
Earlier Thursday, the President of the European Council Herman Van Rompuy said that the EU was ready to take "coordinated measures" if needed but didn't offer any firm support, underlining that Greece had not yet asked for financial help.
"Euro area members will take determined and coordinated action if needed to safeguard stability in the euro zone as a whole," Van Rompuy said.
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