Greece offers to China to buy its bonds at 25 billion euros

Greek government actively invites China to invest about 25 billion euros to the Greek government bonds in the hope of reducing drastically increased the state budget deficit, the newspaper Financial Times.

mediator in negotiations between the Greek Government and the State Administration of currency control of China (State Administration of Foreign Exchange, Safe), which manages $ 2.4 trillion foreign exchange reserves of the country, supports U.S. investment bank Goldman Sachs.

One senior Greek officials said that Athens would welcome the commission of such a transaction. The exact amount of the bond issue is not named, but the official said that in talks with Goldman Sachs cited the amount of 20-25 billion euros.

The Greek Government is taking all possible measures to reduce the state budget deficit of the country, which is the biggest in the EU (12,7% of GDP). It is believed the Greek authorities, for this they need to be placed in 2010 bonds for 53 billion euros (about 20% of GDP).

Chief Operating Officer of Goldman Sachs Harry Cohn twice visited Athens for consultations with the Prime Minister of Greece George Papandreou - in November last year and this month.

While that China refuses to deal. However, a more modest proposal to buy bonds worth 5.10 billion euros may be more successful, believe in the government of Greece after the second visit of H. Cohn.

foreign exchange reserves of China only in the fourth quarter of 2009 increased by $ 130 billion, sources close to the Safe, reported that China already has a “significant amount” of the Greek bond, and the Chinese authorities are wary of increasing this volume.

earlier reported that on Monday, 25 January, the Greek Government has completed the placement of Eurobonds with maturity of 5 years at $ 8 billion euros, having received this request for 25 billion euros.

Director-General of the Greek Agency for Management of Public Debt Spyros Papanicolaou said Tuesday that Greece is planning a new location next month. This time will be posted Eurobonds with maturity of 10 years. The Government intends to finalize the amount of accommodation after studying the market reaction.