Germany Mulls Measures to Contain Greek Default, Spiegel Says
The German Finance Ministry is considering measures to contain the impact from a potential Greek default on indebted euro-area countries and banks, Der Spiegel reported, without saying where it got the information.
Under the plan, the European rescue fund would provide bridge loans to indebted countries as well as give financing to banks affected by a possible restructuring of Greek debt, the magazine said in an article published in today’s edition.
The ministry is considering two scenarios under which Greece could default, with one involving the country’s exit from monetary union, the magazine said. Both scenarios would involve a so-called haircut on Greek debt of 50 percent, according to Der Spiegel.
To contact the reporter on this story: Andreas Cremer in Berlin at acremer@bloomberg.net.
To contact the editor responsible for this story: Chad Thomas at cthomas16@bloomberg.net
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