Germany denies reports Greece could get a parallel currency

Jessica Morris
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Greece could be offered its own parallel currency (Source: Getty)

Germany's finance ministry has denied reports it was considering offering Greece its own parallel currency.

Earlier today Germany's finance minister Wolfgang Schaeuble was said to have raised the possibility of offering it a parallel currency during a recent meeting, according to a a report by Bloomberg.

This prompted speculation that Germany was preparing for the cash strapped country's exit from the euro area, a scenario which would have unknown consequences.

Economists have said hybrid situations such as a parallel currency could emerge if the debt talks deadlock, prompting Greece to default on its €320bn (£228bn) debt pile.

It comes as European Union leaders are discussing the Greek debt crisis at a meeting in Riga, Latvia today.

Greece has been locked in high stakes talks with its "troika" of creditors - the European Union, the European Central Bank and the IMF - over a list of economic reforms since February.

The parties must reach an agreement before Greece can unlock billions of euros of credit due under its €240bn bailout agreement, as it hasn't received any tranches of loans since last August.

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