Is Greece actually, or at least nearly, insolvent?

I hear that the chairman of the Eurozone finance ministers has warned that the IMF may not release the next scheduled payment of Greece's bail-out package. it seems that IMF rules may stop it paying the amount of €12 billion because Greece cannot guarantee its solvency for the next 12 months.

Just make sure you have realised what that means; a sovereign European country, Greece, is feared to be on the brink of insolvency.

While George Papandreou's government ramps up the privatisation programme and tries valiantly to cut public spending whilst the left-wing protests abound and Greek workers try to protect their right to retire at 53, Mr Junker had some good news for Greece but very, very bad news for the rest of the EU; he said that the IMF was assuming that if it decided not to make the payment the EU would step in and make the payment instead.

How much more money are the, relatively, solvent countries of mainly Northern Europe expected to throw at the, relatively, insolvent countries of Southern Europe? Why should German, British and Dutch citizens help to subsidise the people of Greece, Portugal, Ireland, Spain and Italy?