The Chinese Vice Finance Minister Zhu Guangyao said today that European aid to get Spain to clean up its financial sector will have a “beneficial effect” in the short term, but urged the EU to take more decisive action to safeguard the long-term stability in the region.
Zhu made the remarks during a press conference in Beijing to set the roadmap for the G20 summit scheduled for next week in Los Cabos (Mexico), and be attended by Chinese President Hu Jintao, the official agency collects Xinhua.
“The EU and the European Central Bank have made great efforts in combating the crisis, and countries outside the euro area through the provision of funds,” said Zhu.
However, he urged that the euro countries make more efforts to combat the debt crisis.
“Tackling the crisis was a very difficult challenge, but Europe and the G20 should reach a consensus in time to prevent the crisis continues to expand,” said Chinese Vice.
Zhu also said China is ready to “improve cooperation with Europe and the International Monetary Fund (IMF) under the framework of the G20″, noting that the Asian power “trust” in the “ability and wisdom of Europe” to overcome the crisis.
Shortly after Zhu’s statements, the spokesman of Foreign Ministry, Liu Weimin, he “welcomes the decisions by Spain and the European Union, together” and considered that they “will help restore market confidence “.
“The stability of the banking sector in Spain is important to address the debt crisis and to restore economic growth,” he said.
And hue: “China will continue to support and participate to address the European debt crisis.”
Liu avoided answering whether aid to Spanish banks came too late, and only said that “it is the Government of Spain and the EU who should answer that.”
However, it noted that since the outbreak of the crisis, “Europe has taken many steps, and it is fair to say that have been effective,” adding that “we have noticed that all parties (international community) value measures the EU as positive. ”
“The European debt crisis affects the stability of the international economic and financial sector,” he added.
Ministers of Economy and Finance of the euro area announced on Saturday in a statement that granted Spain a loan of up to 100,000 million euros to clean up the Spanish financial sector.
Since early 2011, China has expressed interest in buying part of the Spanish debt, which has acquired a total amount not specified, and in February the Chinese Central Bank raised its stake to 1,000 million euros of Spanish bonds to ten years.
Category: Mutual Funds