China Willing to Buy Euro Debt – With Conditions

National Development and Reform Commission Vice Chairman Zhang Xiaoqiang expanded on earlier comments in an interview earlier today. Zhang said that China is prepared to buy sovereign debt from European countries but governments must address deficits and demonstrate they are committed to greater fiscal responsibility.

Premier Wen Jiabao first hinted that China is willing to “offer assistance” but:

“Countries must first put their own houses in order,” Wen said. “Developed countries must take responsible fiscal and monetary policies. What is most important now is to prevent the further spread of the sovereign debt crisis in Europe.”

Source: Bloomberg

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