Business, Finance & Economics

China makes "secret euro zone commitment:" report


Russian Finance Minister, Anton Siluanov, (L) is welcomed by Central Bank Governor Christian Noyer (R) and France's Finance Minister, Francois Baroin (C) at his arrival at the Finance Ministry in Paris.



As the Group of 20 summit in Paris revolves around the euro zone debt crisis, China has made a “secret commitment” that would prop up the euro zone in return for budget reforms and public sector cuts, the Sunday Times reported on Sunday.

Read more at GlobalPost: G20 pushes euro zone to fix crisis

Chinese representatives at the G20 talks on Saturday indicated that Beijing was “willing to pump tens of billions into the eurozone to purchase infrastructure assets from debt-plagued nations,” the Sunday Times reports.

A source close to the G20 talks informed the Sunday Times of China’s latest economic commitment, also adding that Chinese banks could increase their purchases of euro zone sovereign debt.

Read more at GlobalPost: Does Greece have a future?

"China wants to be sure that Europe knows the size of the hole and that it won't get any bigger before they agree to fill it in," the Sunday Times quoted its source.

On Friday the G20 finance ministers discussed proposals to increase global lending to Europe, Chinese deputy finance minister Zhu Guangyao said, according to Bloomberg.

“The meetings have been discussing how to increase resources for coping with the crisis and to stabilize markets,” said Guangyao, Bloomberg reports.

During the talks on Saturday, the G20 finance ministers vowed to make a decision regarding the debt crisis within eight days.

Read more at GlobalPost: G20 finance ministers meet in Paris