China ready to buy $5.3b of Portugal debt
LISBON: China is ready to buy between 4 billion euros ($5.26 billion) and 5 billion euros of Portuguese sovereign debt to help the country ward off pressure in debt markets, the Jornal de Negocios daily reported on Wednesday.
The paper added, without citing sources, that a deal reached between the two governments will lead to China buying Portuguese debt in auctions or in the secondary markets during the first quarter of 2011. Portugal has moved into the eye of the storm in Europe's debt crisis, with borrowing costs spiking as investors grew concerned it would be next in line to seek an international bailout after Ireland and Greece. Finance Minister Fernando Teixeira dos Santos last week met Chinese Finance Minister Xie Xuren and the head of the People's Bank of China during a visit to the Asian country. Portuguese officials have said the government is trying to diversify the debt investor base, with China as a priority. -Reuters