Latest Rumor: Germany's KFW Bank To Bail Out Greece With €5 Billion Short-Term Solution

Bloomberg is now on the case:

Germany is considering buying Greek bonds through state-owned lender KfW Group, German lawmakers said today. KfW is preparing measures that are part of a European plan to grant Greece as much as 25 billion euros ($34 billion) in aid should the need arise, said four lawmakers, who spoke on the condition of anonymity because the information is confidential.

KfW’s purchase of Greek bonds, backed by German government guarantees, would be an emergency measure as it risks inviting investors to speculate against other euro region countries, the lawmakers said. No decisions have been taken yet, they said.

In other words, just more of the same rumor mongering that has yet to provide one ounce of actionable facts since the Greek crisis began. And what happens when the €25 billion is exhausted? Another X billion bailout, followed by Y, then Z, as nothing ever ever really changes. At least the market likes it.

Oh, and guess who else will be bailing out Greece. You.

Assistance to Greece should flow through the International Monetary Fund, the most suitable body to offer financial help that’s tied to stringent conditions, the lawmaker said. The IMF should provide more than technical assistance, the lawmaker said, citing aid given to Hungary and Baltic states as examples.

A lawmaker who’s on the budget committee said KfW is the vehicle Germany would use to help Greece. Germany’s share in the potential rescue effort would be around 5 billion euros, a fifth of the euro region total, lawmakers said.

But RBS said the IMF would not be involved. How could this happen?