Negotiations between Greece and creditor banks on a deal aimed at cutting the country's towering debt pile are tough but will yield positive results, Germany's foreign minister said during a visit to Athens on Sunday.

Discussions (on the bond swap) are difficult but with good faith they will reach a good result, said Guido Westerwelle, who was speaking through an interpreter.

Westerwelle's visit came two days after talks on the so-called private sector involvement (PSI) broke down, pushing Athens closer to default.

Germany has repeatedly urged Greece to meet the fiscal conditions set out for it by its lenders to continue receiving aid.

(Reporting by George Georgiopoulos)