China ‘secretly agrees to bail out eurozone’

Chinese yuan

Business Digest: Chinese finance ministers say that help is dependent on EU sorting out its books

LAST UPDATED AT 10:35 ON Mon 17 Oct 2011

CHINA has secretly agreed to financially support the eurozone so long as it is satisfied that member countries have implemented sufficient budget cuts and structural reforms to prevent the regional sovereign debt crisis gaining further traction.

The news came as finance ministers from across the world met yesterday in Paris ahead of the G20 leaders’ summit.

The Sunday Times reports that Chinese delegates are willing to pump tens of billions into the eurozone by buying infrastructure and sovereign debt bonds.
 
But one source said: "China wants to be sure that Europe knows the size of the hole and that it won't get any bigger before they agree to fill it in."
 
The finance ministers set a deadline of the end of this week for Europe's leaders to deal "decisively" with the crisis.
 
Read a full report at The Sunday Times (subscription). · 

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