Greek aid package talks 'on track': EU president

TOKYO: European Union President Herman van Rompuy said on Wednesday that negotiations on the activation of a rescue package for debt-burdened Greece are ``well on track'' and he plans to hold a summit around May 10 for eurozone leaders.

``The negotiations are going on. They are well on track, and there is no question about restructuring of the debt,'' Van Rompuy told reporters at a press conference in Tokyo.

Greece is struggling with massive debts, and with prospects for economic growth weak it could end up defaulting.

Global financial markets have tumbled this week despite plans for a euros 45 billion package for Greece from its 15 eurozone partners and the International Monetary Fund. The crisis has disrupted cooperation between eurozone governments, with Germany resisting the idea of bailing out Greece unless strict conditions are met.

Concerns about Europe intensified when Standard & Poor's downgraded Greece's debt to junk status and hit Portugal with a two-notch rating cut, raising concerns of a wider financial contagion.

``As the president of the European Council, I confirm that I intend to convene a meeting of the euro group at the level of heads of state and of government by around the 10th of May,'' said Van Rompuy, who was to meet with Japan's prime minister later in the day.

``On the basis of reports to be finalized in 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,'' he said.

The crisis also threatens to undermine the euro and make it harder and more expensive for all eurozone governments to borrow money.

In Asian trading Wednesday, Japan's Nikkei 225 stock average led the region-wide retreat with a 2.5 percent drop, while Hong Kong's Hang Seng index shed 1.9 percent. In New York Tuesday, the Dow Jones industrial average fell 1.9 percent to 10,991.99 in its worst loss in almost three months.