LUXEMBOURG (AFP) - Sweden's finance minister Anders Borg warned on Tuesday that Greece risks missing budget targets demanded by international lenders in return for bailout funds.

"It is quite clear that there is an evident risk that the Greek programme is off track," Anders Borg told reporters as he arrived for a meeting of European Union finance ministers.

"We have to rethink how we can move faster forward towards backstops and firewalls to handle the situation," he said amid fears Greece is heading towards a default that could devastate the eurozone.

He said banks may have to be recapitalised to cope with the crisis.

The day before, eurozone finance ministers put off a decision on releasing the next installment of bailout funds to Greece, saying Athens can wait until November.