China is ready to buy up to 5.0 billion euros in Portuguese sovereign bonds to help Portugal cope with financial market stress, the newspaper Jornal de Negocios said Wednesday. "China is prepared to lend as much as 5.0 billion euros (6.5 billion dollars) to Portugal" to "ease the pressure" on Lisbon, the newspaper said without citing its source.
The finance ministry did not immediately confirm the report. Saddled with heavy debt and a gaping public deficit, Portugal has had to offer higher interest rates to attract investors to its sovereign bonds and is seen as a likely candidate for a international bailout, similar to those accorded Greece and Ireland.
Jornal de Negocios said an agreement between Portugal and China "should assure a Chinese presence in public debt bond operations or its active participation in secondary market debt negotiations." Finance Minister Teixeira dos Santos travelled last week to China where he met senior Chinese officials to discuss Portugal's debt problems.
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