China hopes for swift end to Greek turmoil

2nd November 2011, Comments 0 comments

China was surprised by Greece's decision to put a bailout deal to a referendum and hopes for a swift end to uncertainty triggered by move, Vice Finance Minister Zhu Guanggao said Wednesday.

"The referendum came as something unexpected," Zhu said on the eve of the Group of 20 summit in Cannes, southern France.

"We hope this uncertain period will be reduced as much as possible so as to boost investors confidence and market stability."

Greek Prime Minister George Papandreou triggered turmoil on world markets when he announced Monday that he would put to a referendum the bailout package agreed by eurozone leaders at a summit the previous week.

Zhu said hina wanted a swift return to stability and growth in Europe, its biggest trading partner and a major target for Chinese investment.

However, he said China was resisting calls to invest heavily in boosting a European bailout fund that forms a key part of the strategy to rescue Greece and end the eurozone's debt crisis.

Klaus Regling, the head of the fund, the European Financial Stability Facility, travelled to Beijing for talks last Thursday, the day the rescue deal for Greece was agreed.

But Zhu said China -- which has huge foreign reserves and which some in Europe see as a possible saviour -- was not in a position to reach a decision on investing in the rescue fund.

"The specialist details (regarding the mechanism of the fund) are not there yet. So there is no question of talking about investing in this yet," he said.

© 2011 AFP

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