George Osborne Thatcher funeral
George Osborne attends Margaret Thatcher's funeral service at St Paul's Cathedral on 17 April 2013Christopher Furlong/Getty

The British government has reportedly performed an about face on giving bailout funds to Greece.

During prime minister's questions on 15 July, David Cameron said it "is not for Britain to bail out eurozone countries and we would not do that".

"Sorting out the problems of the eurozone, which he have always warned about, is a matter for eurozone countries."

However, the following day a Treasury source told City A.M. that the institution was readying a short-term loan to Greece.

The source told the financial paper that the UK government would only issue the loan if the money was somehow guaranteed and that the European Commission is now looking at ways to protect the loan from risk.

Chancellor George Osborne would only follow through if the British taxpayers were not placed "on the line," they said.

The EU is readying a €7bn (£4.9bn, $7.6bn) emergency loan to Greece through the European Financial Stabilisation Mechanism. Britain would be exposed to €690m of that risk.

On 15 July in Brussels the chancellor had struck a different tone, calling the idea of Britain contributing to the loan as a "complete non-starter" and that "the eurozone needs to foot its own bill".

The Treasury would not immediately return a request for comment on the bailout funds.