**Mounting fears over Greece’s ability to pay off its debts have continued to hit the financial markets.**The euro has dropped to a six-month low against the dollar and Greek government debt is considered the riskiest since the euro was formed in 1999.
Greek Prime Minister George Papandreou has repeatedly denied speculation that it will have to be bailed out.
The European Union (EU) also said there was no chance of Greece defaulting or leaving the euro-zone.
Greece’s public debt stands at about 300bn euros ($419bn, £259bn).
Reports have suggested that the EU would, if necessary, bail Greece out - seen as a way to calm the financial markets.
But at the World Economic Forum in Davos, the EU economic commissioner Joaquin Almunia said the 16-member bloc was not considering a bail-out or a default.
The EU, Spain and Germany have denied that Greece could be kicked out of the eurozone.
Greek bonds
Greek government debt is the world’s worst performing in January, according to Bloomberg.
Greek 10-year bonds costs 3.96 percentage points more than German debt - the safest in Europe - on Thursday, the highest since 1998.
Greece aims to shrink public debt to 9.1% of overall economic output this year, down from 12.7% last year.
EU rules state that no nation in the bloc should have an annual budget deficit higher than 3% of its gross domestic product.
Mr Papandreou said in a session at Davos on Thursday that Greece was “being used as the weak link, if you like, of the eurozone”.
Greece, Spain, Portugal, Ireland and Italy together account for 40% of the eurozone’s debt.
Their debt has ballooned as their countries have been battered by the financial crisis, while larger economies have had to spend huge amounts to bail out their key industries.