Greek Finance Minister Yannis Stournaras says that if Greece requires a new bailout next year it would be a 'much smaller' package of around €10 billion with no austerity conditions attached.

His comments come as German Chancellor Angela Merkel said she has ruled out any reduction of Greece's massive national debt.

Two aid programmes from eurozone allies and the IMF have given Athens a lifeline since the country's financial crisis began.

The first, in May 2010, consisted of loans of €110 billion, while the second, in February 2012 provided the country with €140 billion.

Any future bailout would go ahead "without new terms, as Greece's austerity commitments have already been set until 2016.