NEW YORK (CNNMoney.com) -- The German government may offer an aid package to Greece and other debt-ridden European nations in an effort to stave off the default concerns that have stunted global markets, according to reports.
The Wall Street Journal, citing unnamed sources, said a loan guarantee plan would be led by Germany but completed along with European Union partners.
The threat of a default in Greece has given investors pause, as the effect would likely ripple to other members of 16-nation euro zone. Other debt-choked nations in the bloc include Portugal, Spain, Ireland and Italy.
European Union officials are set to meet Thursday to discuss the economy, and Greece is expected to be a major topic on the docket.
In December, Greece's credit rating was downgraded. S&P's move came after health care companies complained that the country was behind on payments related to its public health system.
Investors across the globe have been trying to digest what impact such a crisis would have on the nascent signs of recovery, and ripple-effect fears have sent worldwide markets lower.
The WSJ article said Germany's finance minister, Wolfgang Schaeuble, has discussed the aid idea in with European Central Bank President Jean-Claude Trichet.
But earlier Tuesday, Reuters reported that German government spokesman Ulrich Wilhelm called reports that a decision was already in effect "unfounded."
A bailout of Greece would mark the first time any EU country rescued a euro zone member.
The U.S. stock market was cheered by the reports of possible Greek aid, as the blue-chip Dow index (INDU) added almost 2% with less than 2 hours left in the session. The euro also rose in late trading.
|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||4.45%||4.43%|
|15 yr fixed||3.89%||3.89%|
|30 yr refi||4.44%||4.43%|
|15 yr refi||3.87%||3.87%|
Today's featured rates:
One of the world's leading smartphone makers is aiming for the biggest stock market listing in nearly two years. More
If Trump puts tariffs on European cars, it would hurt automakers who build a lot of cars in the United States. More
The US is set to announce measures this week taking aim at Chinese investment in key American technologies amid an emerging trade war between the two countries. More
In 1998, Ntsiki Biyela won a scholarship to study wine making. Now she's about to launch her own brand. More
If you find yourself in a love-hate relationship with money, here's how to get back on track. More