BERLIN | Mon Oct 29, 2012 6:56am EDT
BERLIN Oct 29 (Reuters) - German law would not permit a second debt haircut for Greece while new aid for the struggling euro zone country is being discussed, Chancellor Angela Merkel's spokesman said on Monday.
"German budget law, in article 39, says that credits can only be given when it is considered unlikely that there will be a default," said the chancellor's spokesman Steffen Seibert.
"We would be tying our own hands with such a measure and it would certainly not be in Greece's interests," he told a news conference, responding to questions about a new write-down of Greek debt to enable it to stay in the euro zone.
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