Could Euro zone gold reserves be used to bail out bankrupt states?

A German source suggests that the country is considering suggesting that state gold reserves could be used as a last resort to bail out Euro zone states facing bankruptcy

BERLIN (Reuters) - 

Germany is considering the possibility of euro zone countries using their central banks' gold reserves to back a European Monetary Fund, German magazine Focus reported on Saturday.

The German Finance Ministry declined to comment on the report by Focus, which did not specify its sources.

"A proposal from the finance ministry suggests pooling the gold reserves of the former central banks of euro zone countries in a stabilisation fund," Focus wrote.
According to Focus, Greece still has around 112 tonnes of gold, while the German Bundesbank has 3,407 tonnes with a market value of around 90 billion euros.

German Finance Minister Wolfgang Schaeuble on Friday repeated his call for a fund which could, as a last resort, offer help to euro zone states facing bankruptcy.
Greece is battling a debt crisis and EU policymakers have been debating ways of providing support for it and other troubled euro zone members.

(Reporting by Stefanie Huber, Writing by Sarah Marsh; editing by Patrick Graham)

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