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China renews pledge to buy Spanish bonds
Date 13/04/2011 16:37  Author webmaster  Hits 1149  Language Global
13 APR 2011

By Fiona Ortiz and Langi Chiang

MADRID/BEIJING, April 12 (Reuters) - China said it will carry on buying Spanish sovereign bonds and help fund a savings bank restructuring, giving the euro zone state fresh ammunition to allay lingering market concerns it might need a bailout.

Spanish officials said last week that China had completed the purchase of some 6 billion euros of Spanish public debt reportedly pledged in January.

"China is willing to buy more Spanish government debt and participate in a fund to restructure Spain's savings banks," Premier Wen Jiabao said on Tuesday after a meeting with Spanish Prime Minister Jose Luis Rodriguez Zapatero, according to state television and official news agency Xinhua.

Spain's borrowing costs have soared since early last year on investor concern that it might follow other euro zone periphery countries down the road to a bailout, and the government has struggled to find investors for the savings banks, which are riddled with bad debts.

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