16 Oct '11, 12pm

China makes 'secret' euro zone commitment

LONDON (AFP) - China has made a 'secret commitment' to prop up the crisis-hit euro zone in return for budget reforms and public sector cuts, the Sunday Times reported, amid ongoing turmoil over the region's debt crisis. The paper said Chinese representatives at the Paris G-20 finance gathering on Saturday had indicated that Beijing was willing to pump tens of billions into the euro zone to purchase infrastructure assets from debt-plagued nations. The Sunday Times, which quoted a source close to the talks, added that Chinese banks could also increase their purchases of euro zone sovereign debt. '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 paper quoted the source as saying.

Full article: http://www.straitstimes.com/BreakingNews/Money/Story/STIS...

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