Jean-Claude Juncker says too early to discuss Greek loan extension

It is too early to discuss giving Greece more time to repay loans from the European Union and International Monetary Fund, the chairman of the group of euro zone finance ministers told a Greek newspaper.

The IMF and Greek finance minister George Papaconstantinou have both said a rescheduling of the payments could be an option but Germany opposes the idea and and the European Union's executive has played down prospects of an extension.

"I don't think it is the right time to start discussing an extension of the repayment of the loans," Jean-Claude Juncker said in an interview published late on Saturday in To Vima newpaper. "I believe it is a premature discussion."

Greece will receive a total 110 billion euros ($153.4 billion) under the three-year plan agreed by euro zone countries and the International Monetary Fund in May to save it from bankruptcy and prevent the debt crisis from spreading to other members of the currency bloc.

Its gross borrowing needs are expected to rise above 70 billion euros in 2014-2015, when it needs to pay its lenders back, from around 55 billion euros a year in 2011-2013. That has raised concerns among investors and triggered talk of a possible rescheduling.

A Greek government spokesperson said on Wednesday that discussions about a possible extension had started within the IMF and among market players but that Athens had not asked for such an extension and was not officially taking part in talks.

Papaconstantinou said in an interview with Realnews newspaper on Saturday that any official discussion of an extension of repayments was far away.

Juncker also said he believed Greece would achieve tough deficit cutting targets. "Greece has made remarkable progress regarding its public finances. The deficit is falling at a remarkable pace".