Germany denies plan to bail out deficit-hit Greece

Berlin: Germany's Finance Ministry said it has no specific plans to help Greece combat its deficit crisis, denying a magazine report that euro-area governments may offer as much as 25 billion euros (Dh124 billion) in aid.

It's "incorrect" that Germany is considering a "concrete" plan for countries sharing the euro to pump billions in financial aid to Greece, ministry spokesman Martin Kreienbaum said in an e-mailed statement. "The Finance Ministry has taken no decisions in this regard," the statement said.

Der Spiegel magazine reported that Germany is considering asking euro-area governments to help provide Greece with loans and guarantees worth 20 billion euros to 25 billion euros, conditional on steps by the government to cut the deficit. Germany would finance almost 20 per cent of the aid, the magazine said in article in yesterday's edition.

Time needed

Greece is "not requesting money from any European Union taxpayer", government spokesman George Petalotis said in an e-mailed statement, echoing Prime Minister George Papandreou's stand.

Greece needs "the necessary time and political support to overcome the economic crisis", he said. European Union leaders ordered Greece on February 11 to get the bloc's highest budget deficit under control and promised "determined" action to protect the euro, without offering specific steps to help Greece handle its debt load. EU finance ministers who met on February 15 and 16 also didn't give specifics.

European Commission spokesman Amadeu Altafaj Tardio declined to comment on the Spiegel report. The commission, the EU's executive arm, stands by the statements issued by government leaders on February 11 and by finance ministers last week, he said.

German aid would flow from the state-owned development bank KfW Group, Der Spiegel said. The Frankfurt-based bank isn't aware of any such plans, spokesman Wolfram Schweickhardt said in a telephone interview. The government hasn't decided on any "aid instruments", Kreienbaum said.