CHINA TO THE RESCUE

EUROZONE SEEKS BAILOUT FUNDS FROM CHINA

BBC News, October 28, 2011

The head of the eurozone's bailout fund is beginning attempts to persuade China to invest in a scheme to help rescue member countries facing debt crises.

After meeting Chinese leaders, Klaus Regling said there were no formal negotiations and would be no deal now.

It is thought China may pay about 70bn euros ($100bn) into the fund, which is expected to be boosted to 1tn euros.

Meanwhile French President Nicolas Sarkozy said debt-ridden Greece's entry to the eurozone was a mistake.

Greece was "not ready" when it joined in 2001, he said, adding that it could be rescued thanks to a new deal on the debt crisis.

European leaders worked into the early hours of Thursday in Brussels to secure an agreement aimed at preventing the crisis from spreading to larger eurozone economies.

The deal triggered a worldwide shares rally.

'Regular buyer'

Beijing has made it clear that it will demand strong guarantees on the safety of any contribution it might make.

While the head of the fund, Klaus Regling, described this as a regular meeting, it is being seen as the start of a process which could yield an agreement.

With vast reserves, Beijing is certainly in a position to invest but like any other investor China will want to make sure its money is safe.

In the past, overseas investments made by China's sovereign funds have soured leading to criticism back home.

Mr Regling, who is chief executive of the European Financial Stability Facility (EFSF), said he was not negotiating with China as a potential investor but holding consultations to decide the terms for raising the money.

(...) [artículo aquí]