IMF Lipsky: New Greek Program Doesn't Involve Debt Restructure

LONDON -(Dow Jones)- The International Monetary Fund's acting head Monday said the new program being developed by the Greek government doesn't involve a restructuring of its debts.

The European Union and the IMF are preparing a fresh financing package for the Greek government to reflect the fact it is unlikely to be able to sell new bonds for some time to come.

"Right now the program that we are supporting...does not contemplate a debt restructuring," said John Lipsky, the IMF's acting managing director.

Speaking at a press conference, Lipsky said the exact amount of external funding needed by the Greek government has yet to be decided. Some European Union governments want Greece to limit the amount of money it will have to borrow from the bloc and the IMF by completing a debt exchange with bond investors that would extend maturities on its debts.

Others favor an effort to persuade the bloc's banks to voluntarily roll over their holdings of Greek government bonds as they mature.

Lipsky said Ireland's austerity program appears to be on track. In November of last year, the Irish government became the second in the euro zone to appeal for financial help from the EU and the IMF.