Merkel Jostles With German Banks Over Greek Debt Rollover Terms

Chancellor Angela Merkel’s government jostled with Germany’s biggest banks and insurers over aiding Greece, as the Finance Ministry rejected industry calls for incentives to encourage them to participate.

Banks and insurers including Deutsche Bank AG and Allianz SE signaled a willingness to roll over maturing Greek debt if governments offer incentives such as guarantees, five people with knowledge of the talks said yesterday. The Finance Ministry sees guarantees as a non-starter because they would undermine the aim of relieving the burden on taxpayers, a government official said. All spoke on condition of anonymity because the talks are ongoing and in private.