EMERGING giants India, Russia and Brazil ruled out contributing to the Eurozone bailouts – though Chinese leaders were yesterday said to be considering offering help.
China has bought Spanish bonds in the past, and was last month courted by Italy as a potential investor.
Last night the country’s leaders were said to be mulling over two potential lines of investment.
One option is to put money into a special purpose investment vehicle (SPIV), which is intended to gather funds to invest alongside the European Financial Stability Facility’s (EFSF) €440bn contribution.
The second option is to increase Chinese participation through the International Monetary Fund (IMF), which may then bail out more stricken governments. However, other countries could oppose any blanket increase in contributions to the fund.
•But French bank Société Générale insisted yesterday that it could turn to its own shareholders if it ever needed to raise additional capital and has no need for any government funds. “If we ever needed it, which I doubt, we could call for funds from our shareholders, and in any case we won’t seek public funds,” boss Frederic Oudéa said.