The European Union aims to clinch an interim debt deal with Greece although there are "low expectations" for a breakthrough at meetings of ministers and EU leaders this week, a European Commission spokeswoman said on Tuesday.

Fitch placed the long-term ratings of Alpha Bank AE (>> Alpha Bank S.A.), Eurobank Ergasias SA (>> Eurobank Ergasias SA), National Bank of Greece SA (>> National Bank of Greece) and Piraeus Bank SA (>> Piraeus Bank SA) on negative watch.

S&P maintained its CreditWatch negative warning on the four banks, meaning that they could be lowered again.

"The CreditWatch status reflects the possibility that we could downgrade the four banks if we anticipate the European authorities' and the ECB's support for Greek banks will no longer be available," S&P said.

Moody's on Monday also downgraded its ratings on the four banks as well as and Attica Bank SA (>> Attica Bank SA).

The ECB told the country's new leftist-led government last week that it would no longer accept Greek government bonds as collateral for funding.

Greece is looking at abandoning the 240 billion euro (178 billion pound) bailout deal with the ECB, European Commission and International Monetary Fund.

A new debt agreement with the euro zone will allow the country to shake off much of the austerity that has been imposed by a EU/IMF bailout since 2010.

Fitch expects the negotiations between the Greek government and its creditors to be "very challenging".

An ALCO survey of 821 people across Greece found 75 percent support for the government's negotiating stance and 67 percent for its overall policies as laid out this week in parliament.

(Reporting by Narottam Medhora in Bengaluru; Editing by Kirti Pandey and Savio D'Souza)