Washington: The International Monetary Fund on Wednesday said that Greece needs another 100 billion euros in aid to avoid a default, and that it should come from the European Union and private creditors.

In a report on the state of its May 2010 rescue loan to Athens, a bailout package coordinated with the EU, the IMF said it intended to continue its own financing program, but noted that Greece is continuing to stagger.

The Fund estimated that Athens requires 104 billion euros (USD 147 billion) in fresh financing -- 71 billion euros from the EU and 33 billion euros from banks and other bodies in the private sector.

Although Greece has met key targets in the IMF’s austere reform program, the Fund warned the government has little margin of error to avoid defaulting on its 330 billion euros of debt.

"Capital account pressures in Greece remain acute, and Greece continues to face extremely high spreads, with large rollover requirements generating financing needs well beyond normal Fund limits," the IMF said.

It projected Greece would suffer a deeper 2011 recession than previously thought, with the economy contracting 3.9 percent, instead of 3.0 percent.

Market sentiment has sharply turned against the country, the IMF observed, pushing back its estimate for the eurozone country's return to the debt markets to the second half of 2014. The prior estimate was for early 2012.

The report came as Greece was hit with a debt downgrade from ratings agency Fitch to junk status, effectively one step above default.

Fitch lowered Greece's rating to CCC, from B+, citing the absence of a new EU-IMF program for Greece and growing uncertainty about the role private investors would play in any new bailout plan.

Fitch was the last of the three global agencies to demote Greek bonds to junk status, following actions by Standard & Poor's and Moody's last month.