Japanese officials promise to keep purchasing Eurozone bailout bonds as EU looks for external sources for help in solving debt problems.
Last week European leaders came to an agreement to fortify the EFSF using two ways: a special fund and an insurance program for sovereign bonds. Europe will continue to tour in rich Asian economies to gain support for the rescue fund and to expand the investments from cash-rich economies like China. Klaus Regling, head of the European Financial Stability Facility believes that the pledge from Japan to buy EFSF bonds has brought some positive news, whereas China made no such commitment to invest in yet.
So far Japan has bought 20% of debt issued by EFSF, and has shown signs to buy more in the future. The senior Japanese officials indicated that Japanese economy depends on the euro in cash and yield from the EFSF bonds, so it might get difficult for Japan to increase its share beyond 20% of bond purchases. Japan is already struggling to recover from tsunami, March earthquakes, nuclear emergency that shook Fukushima, and headwinds from slow global trades. However, Japanese Finance Minister, Jun Azumi said, Tokyo was ready to take “necessary measures” to help revamp the Eurozone in the interests of its own economy.”
Read More : Japan to Keep Buying EFSF Bonds
Last week European leaders came to an agreement to fortify the EFSF using two ways: a special fund and an insurance program for sovereign bonds. Europe will continue to tour in rich Asian economies to gain support for the rescue fund and to expand the investments from cash-rich economies like China. Klaus Regling, head of the European Financial Stability Facility believes that the pledge from Japan to buy EFSF bonds has brought some positive news, whereas China made no such commitment to invest in yet.
So far Japan has bought 20% of debt issued by EFSF, and has shown signs to buy more in the future. The senior Japanese officials indicated that Japanese economy depends on the euro in cash and yield from the EFSF bonds, so it might get difficult for Japan to increase its share beyond 20% of bond purchases. Japan is already struggling to recover from tsunami, March earthquakes, nuclear emergency that shook Fukushima, and headwinds from slow global trades. However, Japanese Finance Minister, Jun Azumi said, Tokyo was ready to take “necessary measures” to help revamp the Eurozone in the interests of its own economy.”
Read More : Japan to Keep Buying EFSF Bonds
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