German banks, industry pledge to help Greece-source

Deutsche Bank Chief Executive Josef Ackermann is helping to coordinate efforts by Germany's private sector to support a rescue package for Greece, a source familiar with the matter said on Friday.

The consortium has already pledged to contribute 1-2 billion euros ($1.33-2.66 billion) toward the effort, although no formal agreement has been struck, the source said, declining to give details on how the plan would work.

Ackermann, one of Germany's top executives and chairman of the Institute of International Finance bank lobby, got involved in helping to assemble the consortium after a conversation with German Finance Minister Wolfgang Schaeuble, the person said.

Deutsche Bank declined to comment.

Schaeuble called Ackermann to ask whether the "banking and financial industry" can do something to help with the rescue of Greece, according to the source.

Ackermann has helped gather a commitment from "a handful of companies", including banks, insurers and one industrial company, the source said without naming them.

The hope is that once the markets see the German private sector is taking the Greek rescue seriously, other companies may follow, helping to stabilise markets, the source said.

Schaeuble said in Berlin that banks could voluntarily join support for Greece. [ID:nBAT005367]

German banks have the second-biggest exposure to Greece after France. [ID:nLDE63R0Y1]

Although Greece is one of the euro zone's smallest members, its fiscal crisis has roiled markets and threatened the stability of the common euro currency. [ID:nLDE63T0IC]

Action from the private sector will also make it easier for Schaeuble to sell a sceptical German public on spending taxpayer funds to bail out Greece, the source said.

In a previous effort to help stabilise Greece's stretched finances, Josef Ackermann met Greek Prime Minister George Papandreou and Finance Minister George Papaconstantinou in Athens in February.