China may help Greece to buy government bonds out in the secondary market.

The Chinese authorities may grant Greece a loan in order to finance the purchase of government bonds which are on the verge of default in the secondary market of the republic. The Appropriate financial assistance is designed to help in the national debt reducing, reports Reuters referring to a source in the cabinet of Greece.

"We see signals that indicate China to take part in a new scheme of lending to Greece", - notes from the agency. According to him a preliminary discussion on the issue were held between Evangelos Venizelos the Finance Minister and a Chinese representative from the International Monetary Fund (IMF). The Source has specified no details about the meeting in Washington.

Previously China acquired the Greek bonds and invested into a major foreign trade port of the republic - Piraeus. The PRC authorities have also expressed their willingness to re-invest into debt securities of the country as soon as the Athens returns to the commercial loan market. It has been decided during the euro-area emergency summit on July 21st 2011 to grant Greece the second financial aid package besides the current program of 110 billion of euros. The Eurozone leaders have agreed that the EU and the IMF will give Athens an additional $ 109 billion of euros by the way Europe will provide its part through the EFSF stabilization fund under a lower rate and longer periods than now. In addition the financial sector has agreed to participate in a new salvation program featuring Greece. It has been determined that the contribution of banks and other institutional investors in the assistance program will be about 37 billion of euros during 2011-2014.

05 August 2011
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