Monday, October 31, 2011
For Europe Bailout Fund, Next Stop Is Japan
October 31, 2011
The head of Europe's bailout fund, Klaus Regling, takes his tour of potential Asian investors to Japan next, after Beijing proved unwilling to open its checkbook until European leaders could offer more details about their plan to save the euro zone.
Japan has shown itself to be a willing buyer of bonds issued by Mr. Regling's European Financial Stability Facility, and Japanese Finance Minister Jun Azumi said last week that the country stands ready to buy more. Mr. Regling said Monday after a meeting with Takehiko Nakao, Japan's top financial diplomat, that Tokyo would continue to buy EFSF bonds.
But with the Europeans now asking foreigners to put up cash for a more risky fund, without the guarantees of EFSF bonds, Japan might also grow wary of committing too soon.
But with the Europeans now asking foreigners to put up cash for a much more risky fund, without the guarantees of EFSF bonds, Japan might grow equally wary of committing too soon.
Posted by Yulie Foka-Kavalieraki at 8:00 AM