por admin » Jue Oct 27, 2011 9:03 am
Chian dijo que ayudara a Europa.
Sarkozy Wins China Cooperation Pledge
By Jonathan Stearns and Helene Fouquet - Oct 27, 2011 8:01 AM ET .
Sarkozy Turns to Hu for China Aid as Europe Expands Rescue Eric Feferberg/AFP/Getty Images
Chinese President Hu Jintao, right, welcomes his French counterpart Nicolas Sarkozy.
Chinese President Hu Jintao, right, welcomes his French counterpart Nicolas Sarkozy. Photographer: Eric Feferberg/AFP/Getty Images
The Oct. 28 visit to Beijing by Klaus Regling, chief executive officer of the 440 billion-euro ($613 billion) European Financial Stability Facility, comes amid a euro-area push to boost the firepower of the EFSF.
The Oct. 28 visit to Beijing by Klaus Regling, chief executive officer of the 440 billion-euro ($613 billion) European Financial Stability Facility, comes amid a euro-area push to boost the firepower of the EFSF. Photographer: Bartek Sadowski/Bloomberg
.French President Nicolas Sarkozy conferred with his Chinese counterpart Hu Jintao as European policy makers seek to build support for an enlarged rescue fund designed to resolve the region’s sovereign-debt crisis.
Hu hopes that the measures will help to stabilize markets, state-owned China Central Television reported. The phone call between the leaders came hours after a euro-region summit ended with an agreement to boost the European Financial Stability Facility to about $1.4 trillion, leveraging existing guarantees by as much as five times. Japan plans to support the increase, and is waiting to hear from European officials on details for the program, according to a person familiar with the matter.
Sarkozy’s outreach precedes a Group of 20 summit he will host next week, with Europeans seeking to bolster the role of the International Monetary Fund in overcoming the euro-region’s woes. Australia’s finance chief said that while it’s “appropriate” to look at the IMF’s resources, Europeans must look to themselves first for bailout money.
“The Europeans have their back against the wall and China is the lender of last resort,” Patrick Bennett, a strategist at Canadian Imperial Bank of Commerce in Hong Kong, said in a Bloomberg Television interview before Sarkozy’s call.
The French president’s office said in a statement that Sarkozy and Hu “agreed to cooperate closely to ensure the G20 can make a decisive contribution to ensure growth and global stability.”
Greek Deal
Chinese Premier Wen Jiabao has signaled willingness to aid the European Union as financial turmoil within the region threatens to crush export demand in China’s biggest market. The expansion of the rescue fund and a deal for bondholders to take 50 percent losses on Greek debt may help Sarkozy and German Chancellor Angela Merkel to convince the world that Europe is getting to grips with the crisis.
“China will need time to evaluate this plan very carefully,” said Shen Jianguang, a Hong Kong-based economist for Mizuho Securities Asia Ltd. “What worries China is that there is so much disagreement among European policy makers. It doesn’t want to be seen spending money on a plan that even Europeans don’t want to support.”
Sarkozy and Hu’s conversation came a day before a planned visit to Beijing by Klaus Regling, chief executive officer of the EFSF, to court investors. China has the world’s largest foreign-exchange reserves at more than $3.2 trillion. Regling is also scheduled to visit Japan, Agence France-Presse reported, citing a European Union official in Asia.
Japan Waiting
Japan, the world’s second-biggest holder of currency reserves, anticipates waiting until November for specification of how it may be able to help Europe, a person familiar with the matter said on condition of anonymity because discussions on the matter are private. Finance Minister Jun Azumi said the European statement today was a “big step forward,” speaking at parliament in Tokyo.
The EFSF, established last year to sell bonds to finance loans for distressed euro nations, has since also gained the authority to buy sovereign bonds on the secondary and primary markets, offer credit lines to governments and recapitalize banks as the Greece-triggered debt troubles have spread. The EFSF said Regling’s visit to China this week is linked to the fund’s original debt-issuance role.
‘Normal’ Discussion
“It is a normal round of discussion with important buyers of EFSF bonds,” Christof Roche, spokesman for the Luxembourg- based facility, said by e-mail yesterday. He declined to comment further when contacted by Bloomberg News by telephone.
China “welcomes” the agreement reached by EU leaders, Jiang Yu, a Chinese foreign ministry spokeswoman, said at a regular press briefing in Beijing. “It is conducive to lifting market confidence.”
The European Union must ensure the safety of China’s investments, the official Xinhua News Agency reported today, citing Wang Hua, an official in the Western Europe division of the International Department under the Communist Party’s Central Committee.
Europe is facing international calls to end a debt crisis that President Barack Obama has said “is scaring the world” and U.S. Treasury Secretary Timothy F. Geithner has described as a “catastrophic risk.”
With the G-20 leaders gathering in Cannes, France, Nov. 3-4, euro-area government heads gathered in Brussels yesterday for the 14th time to tackle troubles that began in Greece two years ago, then engulfed Ireland and Portugal and now threaten Spain and Italy.
Wen’s Message
Premier Wen said last month that while China was willing to help, developed nations also needed to put “their own houses in order.”
In Canberra today, Australian Treasurer Wayne Swan echoed that sentiment. “In the first instance, any bailout fund in Europe is a responsibility of the Europeans,” he told reporters. Swan said in a statement later that global markets will demand details of the European plans. “Europe is building its war chest, but the war has not yet been won,” the statement said.
Stocks rose in Asia after the euro-region meeting, with the MSCI Asia Pacific Index advancing 3.1 percent, the most since September.
“This morning we saw broad positive reaction from the market -- but as they say, the proof of the pudding is in the eating,” Amando Tetangco, governor of the Philippine central bank, said in a mobile-phone text message to reporters today.
Korea, Indonesia
Bank of Korea Governor Kim Choong Soo said his nation hasn’t been approached and hasn’t considered joining the European financing effort. Indonesian Vice Finance Minister Mahendra Siregar said his country also hasn’t been asked to contribute.
The question of leveraging the AAA rated EFSF has arisen because of the political hurdles in countries such as Germany, the biggest European economy, to increasing the national guarantees that back the fund.
As part of its original role, the EFSF is providing 17.7 billion euros under Ireland’s aid package of 67.5 billion euros and 26 billion euros under Portugal’s rescue of 78 billion euros. So far, the EFSF has sold two five-year bonds and one 10-year security, all in the first half of this year. The Japanese government bought more than a fifth of the inaugural issue in January.
On Oct. 13, the EFSF announced changes to its bond-sale program for the two countries in the second half of 2011. Instead of selling four “benchmark” bonds in the period, as outlined in mid-May, the fund will sell one security for Ireland valued at 3 billion euros and delay issues planned for Portugal until “early 2012.”
The EFSF may have to finance more than 70 billion euros of a planned second aid package for Greece. The initial Greek rescue of 110 billion euros in May 2010 was composed of loans directly from euro-area governments and the IMF.
To contact the reporters on this story: Jonathan