Eurozone deal cause for 'cautious optimism': Russia

27th October 2011, Comments 0 comments

Russia said Thursday the eurozone debt crisis deal reached in Brussels provided cause for "cautious optimism" that should help lift the markets in the short term.

"There are grounds for cautious optimism here," President Dmitry Medvedev's aide Arkady Dvorkovich told an investor conference.

"I think that the markets will receive this decision adequately and treat it as sufficient for now."

On the eve of the marathon session in which a new deal for debt ridden Greece was brokered, Russia announced that it backed the idea of using the International Monetary Fund (IMF) to help leverage the eurozone rescue fund.

One of the two options agreed for the European Financial Stability Facility (EFSF) should see the creation of an investment vehicle that attracts private and public investors and could be associated with the IMF.

Russia has welcomed the move as a way of both helping restore Europe's economy and raising Moscow's own profile within the fund.

An IMF deal backed by leading emerging economies such as Russia and China should see them get a bigger say in the IMF decision-making process in return for greater contributions the fund could use to rescue the eurozone.

"Our contribution has to run in parallel with the redistribution of IMF (voting) shares and the strengthening of the role played by emerging countries," Medvedev's economic adviser said.

© 2011 AFP

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