From left to right: Jean-Claude Trichet, President of the European Central Bank, Georgios Papaconstantinou, Minister for Economic Affairs and Finance of Greece and European Economic and Monetary Affairs Commissioner Olli Rehn prior to the Eurogroup meeting in Brussels, March 15, 2010.

Eurozone finance ministers agreed on Monday night how a support package for Greece would be provided if the need quickly arises. However, loan guarantees are not part of the deal.

Jean-Claude Juncker, the Luxembourg Prime Minister and head of the Eurogroup of Eurozone finance ministers said that finance ministers didn't think aid would be needed but that any final decision on help for Greece would be taken by the European Council, comprising government leaders, at the next meeting on March 25- 26. However, he said the decision won't necessarily be taken at that meeting.

To add to the lack of clarity, a spokesman at the German Finance Ministry told Rueters:"We are not aware that this is being planned. Greece is implementing its (savings) program and we expect that it will manage it alone."

“The technical conditions for aid are in place, and it can be organised whenever necessary. But Greece didn’t ask for any aid,” Josef Pröll, Austria’s finance minister said on Monday.

Greece is reported to be seeking  a €25 billion loan and guarantees as the country struggles to cut its budget deficit from 12.75% of GDP (gross domestic product) in 2009 to 8.75% in 2010 and last week, the government announced a€4.8 billion program, which is equivalent to 2% of GDP.

Greece is anxious to reduce its loan funding costs which averaged 4.5% last year and last week it paid at a rate of about 6.4% for €5 billion it raised in 10-year bonds. An additional 1.5 percentage points on Greece’s €270 billion of outstanding bonds amounts to €4 billion a year in additional interest costs - - equivalent to about 1.6 percentage points of GDP.

However, not all the debt is maturing: €9.5 billion is maturing in April; €10 billion in May and €20 billion in the second half of 2010.

Luxembourg’s Jean-Claude Juncker, told a press conference that he is confident that Greece won’t need to draw on European aid measures that are now in the works.

“What will happen if necessary, and we’re still convinced it won’t be necessary, is that we’ll reach an agreement in the Eurozone to offer bilateral support in a coordinated form,” Juncker said in Brussels Monday night after the monthly Eurogroup meeting. “The Greek authorities haven’t asked for any financial help from the other euro-area members.”

“There are still a number of technical questions that need to be addressed. This will happen in the next few weeks,” he said. “It’s very important for me to stress that we have not adopted this instrument because this will be a matter for the European Council.”

“We believe that if we adopted such an instrument, we will not need this instrument because the Greek consolidation measures are credible and we believe the financial markets will have to be convinced by them,” he said.

“The message to the market is not that Greece will be supported, in any case Greece would be supported if this would be needed,” Juncker said. “We don’t think that this will be needed, but we have to take a decision on the instrument.”

“The mechanism will not include loan guarantees,” he added.

“We have been very clear that Greece won’t be isolated or left alone. If the emergency came up concerning Greece, Greece will be helped by the Eurozone,” Juncker stressed. “The consolidation program adopted by the Greek government and parliament is credible and we believe that the financial markets should react in a positive manner to the Greek measures, but if the case for assistance to Greece came up, the European Union and especially the Eurozone will be there.”

“We think that these measures should make financial markets more confident and in that light the eurogroup, the European Central Bank and the commission back the measures taken by Greece that are courageous and demanding.”

The people of Greece have their work cut out for them when it comes to recovery, says Peter Attard Montalto, emerging markets economist at Nomura. He speaks with Christopher Graves, CEO at Ogilvy Public Relations Worldwide and CNBC's Martin Soong, Sri Jegarajah & Karen Tso: