Reports and sources have speculated that Germany is currently in the process of joining hands with its European Union partners to chalk out a plan to rescue the debt ridden Greece and other troubled nations of the Eurozone by offering them with loan guarantees, in order to calm growing concerns of a Government default and to prevent a mounting of credit woes.

Although the plan would be undertaken within the EU framework, it will primarily be led by Germany. Reports are that the plan has recently been discussed by German Finance Minister Wolfgang Schäuble with European Central Bank President Jean-Claude Trichet.

Expectations are, the EU leaders would be meeting to discuss the proposal on Thursday in Brussels. Although no definite decisions on the plan would come out anytime during the week, Germany has reportedly decided that there is no better way to deal with the debt crisis other than offering loan guarantees.

While spokesperson for EU President Herman Van Rompuy and an ECB spokeswoman declined to share a comment on the development, a spokesperson for Germany's Finance Ministry said that no decisions have yet been made on the aid.