Merkel open to 'haircut' on Greek debt if position improves

The German Chancellor Angela Merkel has said she will not rule out a "haircut" on Greece's debt in the coming years.

In an interview with a Sunday newspaper, Ms Merkel said a write-down of Greek debt could happen from 2014 if the country's financial position improves.

Germany has previously been against any haircut on Athens' debt, saying it would break the terms of the country's bailout deal.