BERLIN (Reuters) - German Chancellor Angela Merkel told lawmakers at a closed-door meeting on Wednesday that lower interest rates and an expanded European Financial Stability Fund (EFSF) could fill Greece's financing gap, a source at the session told Reuters.
Merkel addressed the lawmakers after European finance ministers, the European Central Bank and International Monetary Fund (IMF) failed for the second week running to reach a deal to free up new aid for Greece. They are to meet again on Monday.
Merkel told the meeting that EFSF guarantees could be raised by 10 billion euros and that Germany would take its share in that, said the participant in the meeting.
Different euro zone states could help Greece in different ways, she said, according to the source.
Reporting by Andreas Rinke; Editing by Noah Barkin