The International Monetary Fund denied Tuesday it is in talks for a second huge rescue loan for Greece, after Greece's finance minister said discussions were under way for new financing.

"The mission here is not for a discussion on a new programme," said Poul Thomsen, head of the IMF's mission to Greece.

"We have a programme in place, and we continue to expect to be supporting Greece. There's no request for a new programme," he said in Athens, speaking in a conference call with journalists.

On Monday, Greek Finance Minister Evangelos Venizelos said the government had launched into talks with its global public and private creditors, including the IMF, on a new bailout to ease its debt burden.

Venizelos said he hoped a further 89 billion euros ($117 billion) in loans to the government and support for banks would be ready by the end of January.

But Thomsen said he was in Greece following up its progress under the current three-year, 110-billion-euro loan programme from the IMF, European Commission and European Central Bank.

Greece has already received 73 billion euros of that money, and by all accounts it is not near enough to stabilise the country's finances.

The IMF instead pushed for Athens to complete a crucial restructuring of its bonds held by private banks -- the so-called private sector initiative (PSI) -- which is expected to substantially cut its debt payments.

And it urged European officials to move ahead on their own talks for new funding for Greece.

"European leaders have, at the previous summit back in July, said that they'd continue to support Greece for as long as it takes for Greece to restore (debt) market access," Thomsen said, adding: "Of course, assuming that the programme remains on track."

"I think this combination of private sector support and official sector support... together with this comprehensive PSI, is a major improvement in the prospect for debt sustainability," he said.

channelnewsasia.com