October 26, 2011
The head of the euro area’s rescue fund will travel to China this week as European leaders court foreign investors to help stem the region’s debt crisis.
The Oct. 28 visit to Beijing by Klaus Regling, chief executive officer of the 440 billion-euro ($613 billion) European Financial Stability Facility, comes amid a euro-area push to boost the firepower of the EFSF. One option is for the facility to fund a special investment vehicle that would seek outside money, including from the International Monetary Fund.
The EFSF, established last year to sell bonds to finance loans for distressed euro nations, has since also gained the authority to buy sovereign bonds on the secondary and primary markets, offer credit lines to governments and recapitalize banks as the Greece-triggered debt troubles have spread. The EFSF said Regling’s visit to China this week is linked to the fund’s original debt-issuance role.
“It is a normal round of discussion with important buyers of EFSF bonds,” Christof Roche, spokesman for the Luxembourg- based facility, said by e-mail today. He declined to comment further when contacted by Bloomberg News by telephone. Agence France-Presse reported that Regling will travel on to Tokyo, citing a European Union official in Asia.
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