Negotiations on the support mechanism for Greece are being sped up, after ratings agency Standard & Poor's slashed Greece's sovereign debt to junk status. In the meantime, analysts fear the crisis could hover over the southern European nations.

Restructuring Greece's debt is not an issue, argued the EU President, further adding that he plans to hold a summit of euro-zone leaders by around May 10 to discuss Greece's fiscal crisis. The support mechanism will run high on the agenda of the talks between the German Chancellor, the IMF chief and the European Central Bank President.

Dow Jones Newswires claimed that negotiations on the bailout for Greece will have concluded by 2 May. Financial Times read that the IMF plans to give another 10 billion euros to Greece.

"Talks Are on Good Track"

"There is no question about restructuring of the debt," assured EU President Herman Van Rompuy.

In a Press conference given on the sidelines of the EU-Japan summit, the EU President underlined, "The negotiations are going on and they are well on track."

"On the basis of reports to be finalized in the coming days, the heads of state and of government will decide to activate the financing of the joint program under negotiation now between the European Commission, the European Central Bank and the International Monetary Fund, and of course the Greek government," added he.

Neither Greece no other eurozone nation will stop payments, the European Central Bank head Jean-Claude Trichet.

"Unpleasant Medicine"

Unless aid is given to Greece, things would turn "untenable," warned International Monetary Fund head Dominique Strauss-Kahn in his interview with French paper La Tribune.

"We are there to help the Greeks. If we don't help them, they will be in an untenable situation" Dominique Strauss-Kahn

The Greeks have to swallow an "unpleasant medicine" and to accept external aid if they wish to overcome their debt crisis, stressed Strauss-Kahn.

"The Greeks have to realise that straightening out their public accounts, after many years of careless drifting, will be painful and difficult. But there is no other solution to get out of this," argued he.

Britain's Financial Times, citing bankers and US officials, read Wednesday that the IMF is planning raising its contribution to the support mechanism for Greece by 10 billion euros