Business, Finance & Economics

Geithner joins EU talks to solve debt crisis

European finance ministers were meeting for two days in Wroclaw, Poland, amid growing speculation that Greece is on the verge of bankruptcy.

Underlining Washington's fears that eurozone problems could spread beyond Europe, the ministers will be joined by U.S. Treasury Secretary Timothy Geithner.

First Deputy Managing Director of the International Monetary Fund, David Lipton, has also been invited.

The meeting is the first since July 21, when heads of government agreed to expand the 17-member bloc's bailout fund.

It will be chaired by the Polish Minister of Finance Jacek Rostowski, whose country holds the rotating E.U. presidency.

The ministers are due to lay out plans to deal with Europe's debt crisis, including ways to prevent disruptions in financial markets and prospects for a return to growth, reports the BBC.

Three euro zone countries – Greece, Ireland and Portugal – currently benefit from financial assistance from the E.U. and IMF loans.

The ministers must also decide whether European countries should issue eurobonds to guarantee each other's borrowings.

President Barack Obama has urged the bloc to settle its differences over the debt crisis.

The Wall Street Journal reported that the euro zone's failure to solve the debt crisis has led to frustration from the U.S. And the International Monetary Fund – along with volatility in the financial markets.

The meeting comes a day after central banks – including the U.S. Federal Reserve and Bank of England – pumped billions of dollars into the financial system to halt sharp falls on the stock markets.