NEWS

Germany declines comment on Greek bankruptcy plan report

The German government declined comment on Wednesday on a story in German weekly Die Zeit which said Berlin was working on a plan that would allow Greece to receive financing from the European Central Bank even if it missed payments to creditors.

“The plan under discussion is aimed at allowing he ECB to continue financing of Greece in the event of bankruptcy,” the Zeit article said.

“In addition, Greek banks would be restructured, allowing them to continue to take part in central bank operations even after a state bankruptcy.”

The article said that in exchange, Athens would have to show a readiness to cooperate and fulfill its reform obligations. [Reuters]