German MPs: Greece should sell islands to avoid bankruptcy

"The Greek state must sell stakes in companies and also assets such as, for example, unpopulated islands," Frank Schäffler, a Free Democrat MP, told the daily newspaper Bild.

Greece has around 6,000 islands off its coast, of which only 227 are inhabited, according to the country's National Tourism Office website.

Marco Wanderwitz, a congressman for Merkel's conservative Christian Democrats, added Athens should provide collateral for any financial aid it receives from the European Union in order to help it out of the debt.

"In this case, certain Greek islands also come into question," Wanderwitz said.

"We give you cash, you give us Corfu."