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German finance ministry denies report it preparing for a state's insolvency

BERLIN (Reuters) - Germany's finance ministry denied a report on Saturday that its officials were working on a plan to allow an orderly debt restructuring for any country that becomes insolvent.

German magazine Der Spiegel had reported that Finance Minister Wolfgang Schaeuble asked officials to draft plans for a system of debt restructuring for any insolvent country so that it could stay in the euro.

Greece is negotiating for loans in exchange for reforms so that it can repay debts due in the coming weeks and avoid default.

But on Saturday, a spokesman for the finance ministry denied that any preparation of such a framework was taking place.

"This report is not correct," he said. "We are focusing our efforts entirely on the resolution of the current Greek crisis within the framework of the current (aid) programme."

(Reporting By Sabine Siebold; writing by John O'Donnell; Editing by Gareth Jones)