German private sector to help Greece

German financial and industrial firms will contribute to a multi-billion euro bailout for Greece, a senior banking source has said, as talks to secure the aid in return for tough Greek budget cuts edge towards a deal.

The source, who is familiar with the plans but asked not to be named because the details were still being worked out, told journalists on Friday that a German private sector consortium has pledged between 1 billion and 2 billion euros towards the rescue package.

Efforts were being coordinated by Deutsche Bank Chief Executive Josef Ackermann.

The European Commission said talks to finalise the overall rescue package could be wrapped up by Saturday.

Greece is preparing severe austerity measures to cut around 24 billion euros of budget deficit and unlock European Union and IMF aid of up to 120 billion euros, which investors hope will stop the debt crisis from sinking other fragile EU economies.

But it faces a battle with unions who have been angered by the scale of the cutbacks.