China ready to buy $5.3b of Por­tu­gal debt

The Pak Banker - - International -

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

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