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UPDATE 3-ECB's Weber says Greece may need 80 bln euros
April 20, 2010 / 7:22 AM / 8 years ago

UPDATE 3-ECB's Weber says Greece may need 80 bln euros

* Weber tells politicians Greece may need 80 bln euros

* Total needed by Greece may not be known until later-Bild

* Deputy finmin says aid would be in form of pooled credit

* Governments buying Greek bonds has been ruled out

(Changes source, adds Asmussen comments)

BERLIN, April 20 (Reuters) - European Central Bank Governing Council member Axel Weber has told German politicians that Greece may require assistance of up to 80 billion euros ($111.8 billion) in the coming years.

Weber made the comments to members of Germany’s Free Democrats party on Monday, according to people at the event.

The Wall Street Journal also reported that Weber told the politicians that Greece’s debt situation was worsening and that “the numbers are changing all the time,” the newspaper said, citing a source.

German newspaper Bild said Weber warned that the total amount of aid Greece requires may not be known until later, drawing a parallel with the case of nationalised German property lender Hypo Real Estate HRXGe.DE in 2008.

The Bundesbank declined to give an immediate comment.

Euro zone leaders agreed a giant EU/IMF fall-back aid package for Greece earlier this month. [ID:nLDE63A0BO]

However, the move has failed to quell market concerns.

The premium demanded to hold Greek bonds rather than German benchmarks rose to a euro era record of 482 basis points on Monday.

The cost of protecting Greek government debt against default also hit a record high [ID:nLDE63I0O2] [ID:nLDE63l100].

Germany unveiled further details to the aid plan on Tuesday.

The country’s deputy finance minister, Joerg Asmussen, said the euro zone would provide help to Greece in the form of pooled loans, but the idea of buying Greek bonds has been definitevly ruled out.

“If it comes to financial aid for Greece, then the path will be a pooled credit, which in the case of Germany would be done via (state bank) KfW,” Asmussen told reporters. “The solution of buying Greek bonds is off the table.”

For Wall Street Journal story click (here 072402292.html#mod=todays_europe_page_one) (Writing by Brian Rohan and Marc Jones; editing by John Stonestreet and SImon Cameron-Moore)

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