Greek PM rules out default, debt restructuring

Greek Prime Minister George Papandreou ruled out defaulting on or restructuring his country's huge public debt but said he expected EU/IMF rescue loans to be stretched out and the interest rate reduced.

Papandreou told global business leaders at the World Economic Forum on Thursday that Athens hoped to return to capital markets even this year after implementing draconian austerity measures to slash its budget deficit.

"Of course the question of restructuring has been around. I can say that we're not going to default. I also say we're not moving to restructuring," he said.

"Yes, there will be a lengthening of the debt we have to the IMF and the EU, and there has been discussion about the terms of the loans. I think these are in the pipeline," he said, adding that easier terms would help Greece avoid a funding "bump" in 2014.