Emerging giants meet to define G20, eurozone policy

3rd November 2011, Comments 0 comments

Emerging giants Brazil, Russia, India, China and South Africa met on Thursday to hammer out a common position ahead of the G20 summit, which is to be dominated by concerns over the eurozone debt crisis.

Brazil's Dilma Rousseff, Russia's Dmitry Medvedev, China's Hu Jintao, India's and South Africa's Manmohan Singh gathered at Hotel Carlton in Cannes hours before the meeting of the world's biggest economies was to open officially.

China has signalled that it could provide up to $100 billion (73 billion euros) in support for the eurozone, a member of the Chinese central bank's monetary policy committee said in an interview Thursday.

If certain conditions are met "one could think that an amount around 100 million dollars is not inconceivable," Li Daokui said in an interview in the French daily Le Figaro.

The head of the European Financial Stability Facility, Klaus Regling, travelled to Beijing last Friday for talks about a possible contribution, but China has so far made no firm commitment to provide financial assistance.

"China is ready to help Europe, it is clear, but there are at least two preliminary conditions" to fulfill, said Li, noting that Beijing wants certainty that the EFSF package works.

In addition, China wants to know what sort of guarantees would be offered if the bailout fails.

Brazil earlier said that it would not purchase European bonds but would provide help via an IMF-administered fund.

European leaders thought that they put the Greek debt crisis to bed with a rescue plan on October 27.

But Greece shocked the markets with an announcement that it would put the package to a referendum.

© 2011 AFP

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