(Adds second official, background)
BERLIN, Aug 28 (Reuters) - Germany is not considering providing Turkey with a financial lifeline to help it overcome a crisis sparked by a fast falling lira, a government official told Reuters on Tuesday.
“Our position has not changed,” the official said, pointing to a government statement on Aug. 20 that financial aid to Turkey was not a question for Germany at the moment.
The Wall Street Journal reported earlier that the German government was considering providing emergency financial assistance to its ally in the NATO military alliance.
The Turkish lira weakened on Tuesday as investors gauged the government’s efforts to manage its rift with the United States, which has imposed trade sanctions on Turkey.
The dispute with the United States over an American evangelical Christian pastor detained in Turkey on terrorism charges has accelerated losses in the lira, which is down about 38 percent against the dollar this year.
The Turkish and German governments are also trying to mend ties strained by Turkey’s detention of German citizens and German criticism of President Tayyip Erdogan’s security crackdown after a failed coup in 2016.
Erdogan pays a state visit to Germany next month, another sign that the two countries want to patch up relations.
A second German official told Reuters: “You can’t do much from outside but to stress that Turkey must reform itself.”
Investors are worried about the direction of monetary policy under Erdogan. The president, a self-described “enemy of interest rates”, has repeatedly put public pressure on the central bank and also picked his son-in-law as finance minister.
Reporting by Gernot Heller and Andreas Rinke Writing by Joseph Nasr; editing by Mark Heinrich