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Treasury Secretary Timothy Geithner pressed Europe on Friday to boost its bailout fund resources, citing the euro zone debt crisis and oil prices as the two main factors influencing the pace of the United States' economic upturn.

Greece and its private creditors made progress Thursday in talks on restructuring its debt, both sides said, and they will continue negotiating on Friday with the aim of sealing an agreement within a few days.

The European Central Bank remains no closer to agreeing on whether or not it will take losses on the Greek bonds it owns, Eurozone central bank sources said on Thursday.

German Chancellor Angela Merkel said on Thursday talks between the Greek government and its private creditors were on track but next Monday's EU summit would focus on how to boost growth and employment in Europe rather than Greece's predicament.

Greece's tortuous negotiations over a debt swap with private creditors entered a new phase on Thursday with focus on how much the European Central Bank and other public creditors may need to contribute.

Greece resumes tortuous negotiations on a debt swap with private creditors in Athens on Thursday, with all eyes on the European Central Bank after IMF chief Christine Lagarde said public sector holders of Greek debt may need to take a haircut too.

The European Central Bank has ruled out taking voluntary losses on its Greek bond holdings but is now debating how it would handle any forced losses and whether to explore legal options to avoid such a hit, central bank sources told Reuters on Wednesday.

Global growth is slowing rapidly and the possibility of ample economic slack means risks of damaging deflation are rising in some G20 member economies, the International Monetary Fund said in a paper published on Wednesday.

Greece hoped on Wednesday it could wrap up tortuous negotiations on a debt swap as early as this week when private creditors return to Athens for a fresh round of talks to avert a chaotic default.

The European Commission stands by the size of euro zone taxpayers' contribution of up to 130 billion euros ($169 billion) to the second Greek bailout, a Commission spokesman said on Wednesday.

Brent crude slipped below $110 on Wednesday as recession fears, partly rekindled by stalled Greek debt talks, weighed on the outlook for demand, while threats by Iran to respond to European sanctions by shutting a vital trade route supported prices.

IMF Managing Director Christine Lagarde said on Wednesday that combining the European Union's temporary EFSF rescue fund with its permanent ESM mechanism would help restore confidence in the flagging region and provide a solid firewall to the Greek crisis.

Greece's private creditors pleaded on Tuesday with European officials who rejected their bond swap offer to hammer together a deal before Athens tumbles into a chaotic default.

Even as Greece works towards an agreement with private sector investors to meet their debts, the S&P warned that Greece is likely to enter into default.

Gold fell on Tuesday as a lower euro, due to an impasse to restructure Greek debt, and weakness in crude oil and equities prompted investors to take profits.

Europe's debt crisis could tip the world economy into recession and a bigger firewall is urgently needed to keep the damage from spreading, the International Monetary Fund said on Tuesday.

The euro zone debt crisis is escalating and dragging down the world economy, the International Monetary Fund said on Tuesday, as it sharply cut its outlook for global growth and called for policies to restore confidence.

The euro zone debt crisis is escalating and could derail the global economic recovery, the International Monetary Fund warned on Tuesday as it called for urgent action to restore confidence.

Greece's private creditors pleaded Tuesday with European officials who rejected their bond swap offer to hammer together a deal before Athens tumbles into a chaotic default.

Greece was clinging on Tuesday to hope of a last-minute bond swap deal to avoid a messy default after euro zone officials sent talks back to square one by rejecting a final offer from the country's private bondholders.

Uncertainty over the outcome of talks to restructure privately held Greek debt limited gains in European shares and the euro on Monday ahead of a finance ministers meeting to decide the terms of further aid for Greece.

Eurozone finance ministers will decide on Monday what terms of a Greek debt restructuring they are ready to accept as part of a second bailout package for Athens after negotiators for private creditors said they could not improve their offer.

There are weeks when it can sound as if the European sovereign debt crisis is going round in circles.

The representatives of Greece's private creditors left Athens unexpectedly on Saturday without a deal on a debt-swap plan that is vital to avert a disorderly default, sources close to the negotiations told Reuters. Negotiations will continue over the phone during the weekend.

Group of 20 nations agreed to push Europe to take extra steps to resolve the debt crisis on Friday as they inch toward a deal to boost the International Monetary Fund's firepower.

Economic growth, jobs and protectionism are the top three worries at the start of 2012, according to a Call to Action published by 11 leaders of international organizations on Friday in a bid to kick-start debate at next week's Davos Forum.

The Canadian dollar touched a six-week high against its U.S. counterpart on Thursday after Canadian manufacturing data beat expectations and solid demand at a euro zone debt auction eased investor fears about Europe's sovereign debt crisis.

Greece and its bondholders have made little progress since resuming stalled talks on a debt swap, three sources close to the talks told Reuters on Thursday, with time to strike a deal and avoid a messy default running out rapidly.

World stocks rose to their highest in over two months on Thursday as risk appetite improved on hopes Greece will reach an agreement with its creditors and the International Monetary Fund will boost resources to tackle the euro zone debt crisis.