German Chancellor Angela Merkel is loathe to consider any further debt haircuts to Greece, as she is due to face the German electorate next year. According to Der Spiegel
the IMF proposal to write off some of the publicly held Greek debt could cost Berlin up to €17.5 billion, a move unlikely to go down well with German taxpayers.
German Finance Minister Wolfgang Schäuble is also vehemently opposed to such a proposal, stressing other solutions to the Greek debt crisis should be considered.
reported Olli Rehn, European commissioner for economic and monetary affairs, categorically ruled out any further debt write off for Greece, saying "the loans made by euro-area governments to Greece 'won’t be touched'."
Lowering Greek loan rates may be one part of the program to ease Greece’s unsustainable debt load. To Vima
reports the European Financial Stability Fund (EFSF) is considering drastically reducing the interest rates on Greek loans, with loans perhaps being offered with zero percent interest.
Der Speigel reported Germany has made profits of €400 million on the first €110 billion bailout package for Athens, and is considering passing those profits over to Greece. German government sources have said it could be damaging for the country to be perceived as profiting from the suffering in Greece.