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WASHINGTON: Greek Prime Minister George Papandreou said Tuesday that President Barack Obama offered a "positive" verdict on European plans to thwart speculators blamed for deepening Greece's crisis.
Obama later presided over a White House ceremony celebrating Greece's Independence Day later this month, and said that in good times or bad, Greeks would always have a friend in the United States.
The president did not however publicly comment in detail on efforts by Papandreou and the European Union to contain the Greek debt crisis, which has inflicted a painful toll on the euro and rocked world markets.
The Oval Office meeting came amid mounting opposition at home to austerity plans by Papandreou's government and was the highlight of the third leg of an international trip to seek support for his debt-crippled nation.
He said recent statements by French President Nicolas Sarkozy and German Chancellor Angela Merkel had sent an important signal that they would not allow speculators to "play around" with the security of the Eurozone.
"We have found a positive response from President Obama which means this issue will be on the agenda in the next G20 meeting," said Papandreou.
But unusually, Obama did not appear together before the cameras with his guest during the Oval Office talks, an omission the White House put down to time constraints.
Papandreou, who had earlier accused speculators of betting on a default by Greece, and making it harder for his country to borrow on credit markets, was left to speak to reporters alone outside after the meeting.
At the Independence Day celebration in the East Room of the White House, Obama offered a warm personal endorsement of Greece, but did not dwell on its economic problems or actions that needed to be taken to solve them.
"Whether in good times or in bad times, the people of Greece will always have a friend in the United States of America," Obama said.
The White House stressed Greece's plight was a European issue.
"The president has on a number of occasions... been briefed on the situation, but again, believes that this is something that the Europeans can and should resolve on their own," said Obama spokesman Robert Gibbs.
Papandreou also met Treasury Secretary Timothy Geithner, and in a non-committal statement, a Treasury spokeswoman said the talks focused on continued US-European efforts to increase oversight of derivatives trades.
The Greek leader reiterated that he had not asked the United States for a bailout, even as his government struggles to extricate Greece from a debt crisis that has had a harsh knock-on effect on the euro.
"We haven't asked for financial help, we are not asking for a bailout, we are not asking for financial help from anyone," Papandreou said.
Greek Finance Minister George Papaconstantinou, conscious of growing opposition in Greece to government austerity measures, told CNBC television earlier that his country needed access to cheaper loans.
"We're not looking for any financial rescue. We're trying to borrow on international markets on our own terms," he said, adding that Greece could not continue to borrow at interest rates exceeding six per cent.
Greece has been forced to pay a much higher rate of return when it offers debt to investors than that offered by more stable economies, evidence that its volatile economy is making it harder for Athens to secure financing.
Papaconstantinou visited the International Monetary Fund in Washington Monday to discuss technical assistance amid speculation that Greece may seek an IMF bailout if support from the European Union proves inadequate.
Papandreou has sought to drum up international backing for his nation on his trip, and on Monday he issued an impassioned plea to the United States to help crack down on the speculators he blames for exacerbating Greece's woes.
"Unprincipled speculators are making billions every day by betting on a Greek default," he said, following reports US funds placed big bets against the euro, the sole currency of 16 European Union member states, including Greece.
The euro has had a rocky ride since it was disclosed that Greece's public debts have mushroomed to 300 billion euros (US$408 billion), well above its annual economic output.
- AFP/yb
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