UPDATE 1-Germany declines comment on KfW Greece debt report

* No comment on report KfW bank could buy Greek bonds

* Germany insists, in public, Greece must solve its problems

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BERLIN, Feb 26 (Reuters) - A German Finance Ministry spokesman declined to comment on Friday on a report by U.S. news agency Bloomberg that Germany may buy Greek bonds through state state-owned development bank KfW.

The report cited four unidentified German lawmakers.

"That's not a source we will react to," the spokesman said.

Reuters reported earlier this month that the coalition was considering using bank KfW to buy Greek government bonds to ease Greece's financing problems. [ID:nBAT005115]

A spokesman for the KfW said the bank would not comment on speculation in the latest report.

The German Finance Ministry at the weekend declined to deny a report it had sketched out a plan in which countries using the euro currency will provide aid worth between 20 billion and 25 billion euros for Greece. [ID:nLDE61J05O]

The ministry said only that it was incorrect that "concrete plans" had drafted about potential aid for Greece.

In public, Chancellor Angela Merkel's government has insisted Greece must resolve its budgetary woes. In private, however, senior financial officials admit that contingency plans have been drawn up in case Berlin needs to help rescue Greece. (Reporting by Paul Carrel and Patricia Uhlig)