German Chancellor Angela Merkel on Saturday ruled out canceling any of Greece's debt, noting that European banks and creditors have already made significant cuts.
Her comments came after Alexis Tsipras and his Syriza party were swept to power in Greece, vowing to end austerity and renegotiate with the country's European creditors.
In an interview with German newspaper Die Welt published Saturday, Merkel stressed that she wants Greece to stay in the eurozone, but took a hardline with the country's new leftist government which has promised that Greece's years of "humiliation and suffering" were over.
"I do not envisage fresh debt cancellation," said Merkel.
The European Commission, European Central Bank, and International Monetary Fund had previously agreed to a $270 billion bailout package with the Greek government, and new Greek Prime Minister Tsipras has promised to negotiate with the government entities.
Tsipras, who was sworn in as Greece's prime minister earlier this week, has said he was determined to challenge the country's European lenders after years of crippling economic austerity imposed by Greece's creditors.
But Merkel said on Saturday that "there was already a voluntary waiver by private creditors."
"Greece has already been exempt from billions by the banks. I don't see a further debt haircut," she said. "Europe will continue to show solidarity for Greece, as for other countries hit particularly hard by the crisis, if these countries undertake their own reforms and savings efforts."
A European Central Bank policymaker also threatened to stop funding Greek banks if the country doesn't agree to renew its existing bailout package, Reuters reported.
"Greece's program extension will expire in the end of February so some kind of solution must be found, otherwise we can't continue lending," Erkki Liikanen, with the ECB's policymaking Governing Council, told public broadcaster YLE.
Greece still has a debt of over $310 billion, which is about 175% of its gross domestic product.