BERLIN (MNI) – German Finance Minister Wolfgang Schaeuble aims to
propose a compromise to his Eurozone peers and the European Central
Bank, in order to allow private sector involvement in a second bailout
for Greece German weekly Der Spiegel reported over the weekend.

According to the magazine, citing an internal ministry plan, a
“working group Greece” in the German finance ministry is proposing that
Greece should get money from bonds issued by the European Financial
Stability Facility (EFSF). These top-rated bonds would then be provided
to Greek commercial banks through the Greek government, Der Spiegel
wrote.

The EFSF funds could be issued next to additional financial aid of
E90 to E120 billion, the magazine said.

The Greek banks could then use the bonds as collateral with the ECB
in case of a private sector rollover of Greek debt, the magazine said.

–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com

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