Crisis in euro zone worsens on fears of debt restructuring in Greece

euro and some euro zone bonds were hit by concerns over possible debt restructuring in Greece. Germany said that Berlin does not believe Greece, which sealed a 110 billion euro ($158 billion) bailout from the EU and IMF a year ago, would make it through the summer without a restructuring.

Besides, on the sidelines of elections of anti-euro party in Finland Portugal’s pending bailout came also under question which impacted market confidence.

Sunday last week the anti-euro True Finns party gained big score in a vote and vowed to push for changes to a Portuguese rescue by the EU that is expected to total 80 billion euros when it is finalized by a mid-May deadline.

Greece, saddled with a debt burden that is expected to swell to 160 percent of gross domestic product by 2013, has denied repeatedly that it plans to restructure. Bank of Greece Governor George Provopoulos warned on Monday it would have "catastrophic consequences."