China on Saturday welcomed the new bailout plan for the troubled Greek economy as a solid step forward in addressing the eurozone's sovereign debt problem. "This will help in promoting a resolution of the eurozone sovereign debt issues, maintaining financial stability in the eurozone and its member states, and maintaining market confidence," central bank governor Zhou Xiaochuan said.
"We support the efforts made by the European Union and the eurozone in combating the global financial crisis and improving their fiscal situation," he said in a statement posted on the website of the People's Bank of China. Eurozone leaders and private creditors agreed at an emergency summit late on Thursday to give Greece a new 159-billion-euro bailout, risking a potential default through its inclusion of the private sector so as to prevent the debt crisis from spreading.
The eurozone and the International Monetary Fund will provide 109 billion euros while private sector banks will share the costs with about 50 billion euros up to 2014, a total equivalent to $229 billion. "China has always been confident regarding the eurozone and the euro and will continue to play an active and stable role in the international financial market," Zhou said.
He pledged that China would step up co-operation with the European Union, the European Central Bank and the European Financial Stability Facility. He added that the European financial market will continue to be one of China's biggest investment destinations. China has repeatedly expressed its confidence in the eurozone economies amid the crisis, and has invested an increasing portion of its world-leading foreign exchange reserves in euro-denominated assets.
Comments
Comments are closed for this article.