DAVOS, Switzerland (MNI) - Recent media reports that China would buy up to E25 billion worth of Greek sovereign bonds are "wrong," Greece's Prime Minister George Papandreou said here Thursday.

Speaking on a panel that included European Central Bank President Jean-Claude Trichet, Papandreou said that Greece has "not asked for money anywhere else." He added: "We are in a jittery time" in which "rumors can create problems."

Indeed, on-again, off-again rumors of a large Chinese bond buy, as well as about a possible eurozone-wide bailout for Greece, have whipsawed Greek sovereign debt in financial markets this week.

The spread on Greek 10-year bonds earlier today hit a new post-EMU record against German Bunds, soaring well above 370 basis points. Then, after a newspaper report said eurozone members were working on a bailout for Greece, the spread narrowed briefly to below 370. After the German Finance Minister aggressively denied the report, the spread blew out again, setting a new record at 380 basis points.

Papandreou strongly and repeatedly reaffirmed his government's determination to part with the past and regain control of public finances. "Be confident that we will do what we say," he promised.

He reiterated that Greece would push its deficit back down to below the EU limit of 3% of GDP within three years, as its recently submitted stability and growth plan envisions.

He made clear Greece had no intention of leaving the eurozone, saying that the monetary union has been "an asset for our country" and has provided "a buffer" for the Greek economy.

The Greek government head said he supported the creation of a eurozone-wide bond. Such a bond, which would not be underwritten by any one national government but by the bloc as a whole, has been discussed as a possible way to extend financial help to Greece. But Papandreou said his support for the idea was as a European, not because of his country's present difficulties.

He assigned blame for the current crisis to his own country, saying it was "home grown," and promising to put Greece's house in order. "Our first deficit is the credibility gap," Papandreou said. He pledged budget cuts across the board and "huge administrative reforms."

At the same time, he said Greece had "great growth potential," and said his government would seek to turn the current crisis into an opportunity.

Greece's citizens are well aware of the sacrifices they will need to make, Papandreou said. "The changes will be painful, but people are determined," he declared.

Spain's Prime Minister Jose Zapatero, speaking on the same panel, declared that no country would be leaving the eurozone. On the contrary, he observed, more countries will be joining it.

He pledged that Spain, which faces grave economic and fiscal problems of its own, will bring its budget deficit back down to the EU limit by 2013.