Fortunately for post-war Germany they didn't have to pay any reparations from the First World War as the payment had ceased in 1932. Reparations had always been a thorny political issue in Germany, even from the signing of the Treaty of Versailles. In the Treaty itself, Germany was not given a definite figure to repay; rather it simply agreed to pay an indefinite amount that would be decided by a yet-to-be established Reparations Committee. In the meantime, Germany had to pay for the upkeep of the occupying armies with raw materials and food. This is referred to as payment in kind. Eventually the figure was settled as 132bn Marks, or £6.6bn.

Given the state of the German economy after the war, and the loss of significant coal deposits in Silesia and Alsace-Lorraine, Germany was unable to keep up with her payments either in raw materials or in money. The result of this was that Belgium and France occupied the Ruhr region of Germany and confiscated all production in payment. German workers laid down their tools in a scheme of passive resistance. However, it was during this time that hyperinflation brought on by war debts, a failing economy and decreased production reached its high point. Germany needed serious help, and passive resistance in the Ruhr wasn't really winning them any friends. The practice was ended and the so-called Dawes Plan was drawn up, whereby Germany would recieve foreign investment and loans, the French and Belgians would withdraw from the Ruhr, the schedule of repayments would be redrawn and a new currency, the Rentenmark, would be issued to replace the hyperinflated Goldmark.

However, many viewed the Dawes Plan as only a stopgap measure and pressured for a new deal, which was drawn up in 1929. The Young Plan, as it was called, set a new schedule and reduced figure for reparations. Crucially, it set a fixed end date for payments (1988), which was the first time that such a thing had happened. It also required the French and British to withdraw from the Rheinland ahead of schedule, and provided additional loans to Germany. While economically sound, the plan drew criticism from the right wing who viewed it as selling out to international financiers and making Germany dependent on foreign aid.

Last but not least, following the deepening financial crisis, a moratorium had been placed on reparation repayments in 1931. In 1932, a conference was held in Lausanne which agreed that Germany should no longer have to make payments given their dire financial situation. By this point Germany had only paid roughly one sixth of what they were originally required to do so.

Therefore, German ended and indeed began the Second World War without any obligation to pay reparations. However, following the end of the Second World War, various debts and repayments mostly fell on West Germany. West Germany voluntarily signed agreements with Israel, Greece and Yugoslavia amongst others to voluntarily pay reparations for the damage done to their citizens and economies. Additionally, West Germany agreed to pay the reparations which had not been previously paid from WWI, in addition to other debts accrued. It was agreed that West Germany should not bear the entire weight of debt, and a portion was only to be repaid upon reunification, which did not occur until 1990. However, reunified Germany continued to pay this debt, with the last payment being made in 2010.

In summary, Germany ceased to make WWI reparations payments in 1932 but the West German government voluntarily agreed to continue payments in 1953, with the condition that part of the debt only be paid upon reunification.

For further reading:

Leonard Gomes, German Reparations, 1919-1932: A Historical Survey (2010)