BRICS countries acquire European Stability Fund bonds

20 September 2011

Lisbon, Portugal, 20 Sept – The financial director of the European Financial Stability Fund (EFSF) said that some BRIC (Brazil, Russia, India, China and South Africa) countries have acquired bonds from the facility, which is funding the financial bailouts of Portugal and Ireland, Portuguese newspaper Jornal de Negócios reported.

Without providing details, Christophe Frankel said that out of Brazil, Russia, India, China and South Africa there are countries that have already bought bonds from the European Financial Stabilisation Fund.

Speaking to Brazilian newspaper Valor Económico, Frankel said that the board of the EFSF was happy that new countries were coming in, “as this represents an interesting diversification in our portfolio of investors.”

Last week, Brazil’s Finance Minister, Guido Mantega, announced that the BRICS would discuss ways of helping the European Union.

The EFSF is one of the European instruments to help countries with financial difficulties, in this case those countries in the Euro Zone.

Another European instrument, the European Financial Stability Facility covers all countries in the European Union and is managed by the European Commission. (macauhub)