Germany says does not rule ouf IMF aid for Greece

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The German government does not rule out aid from the International Monetary Fund for Greece, a government spokesman said on Friday.

"We remain confident that Greece's consolidation efforts will be successful," spokesman Ulrich Wilhelm told a regular government news conference, adding: "The signals from the capital markets have been encouraging that it's succeeding."

Wilhelm added: "The German government does not rule out IMF support." He said there was still no final decision in the German government on that question.

A spokesman for the Finance Ministry said German Finance Minister Wolfgang Schaeuble was reserved about the idea of the IMF helping Athens. He reiterated that Greece has not sought financial aid.

"Greece has our full political, technical and advisory support," Finance Ministry spokesman Michael Offer said, speaking at the same news conference.

The European Union's monetary affairs chief urged the bloc's leaders earlier on Friday to agree on a standby aid package for Greece next week after Athens said it could seek IMF help if it gets no firm promise of European aid.

EU heads of state and government are expected to discuss the issue at a summit in Brussels next week.

Despite the EU's verbal assurances of support, investors fear it could prove impossible to construct a euro zone financial safety net for the currency area's most heavily indebted member because of German reluctance.