BRICS countries bought EFSF debt: report

Mon Sep 19, 2011 8:56am EDT
 
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SAO PAULO (Reuters) - The BRICS emerging market powerhouses have already bought debt through the European Financial Stability Facility (EFSF) and could buy more, a potential help to struggling euro zone economies, a Brazilian newspaper reported on Monday.

"We're very pleased to see already some BRICS countries investing in our debt," Christophe Frankel, chief financial officer of the EFSF, told Valor Economico, Brazil's leading financial daily.

"This represents a very interesting diversification in our investor base," he added.

Brazil's central bank and finance ministry declined to comment.

The BRICS group includes Brazil, Russia, India, China and South Africa -- major emerging economies whose growth has made them stand out, even as developed nations continued to struggle.

The euro zone is facing rocky economic prospects, with debt problems in Greece and elsewhere threatening the monetary union's survival.

The EFSF has already held a number of teleconferences with BRICS central banks, Valor reported.

The facility is rated AAA by rating agencies, which means investment in its debt is considered close to risk-free.

The EFSF was set up in May 2010 to raise cash for Portuguese and Irish bailout packages as part of a wider safety net.   Continued...