Brazil And China Explicitly Refused To Buy European Debt Directly.

　　 Brazil and China explicitly refused to buy European debt directly.

For more than a week, governments and banks in the eurozone have been negotiating to reach agreement on easing Greece's debt burden. Leaders hope that a comprehensive solution to the euro zone debt crisis, including the agreement, can be announced at a summit in Brussels on Wednesday.

European Union finance ministers canceled Tuesday's scheduled meeting on Wednesday before the summit, exacerbating doubts about the possibility of reaching a comprehensive solution.

If EU leaders fail to agree on some specific issues of the European financial stability fund (EFSF) at the summit on Wednesday, the financing costs of the fund may continue to be under pressure. In the past few weeks, uncertainties have led to a sharp rise in the financing costs of the fund.

European leaders have spread news that developing countries, including Brazil and China, can inject capital into EFSF through buying eurozone bonds, which will help reduce bond yields and ease debt pressure in Spain and Italy.

Both China and Pakistan have expressed doubts. Liang Guoyong, an economic affairs officer of the investment and business division of the United Nations Conference on Trade and development, said China should not play a leading role in buying junk EU sovereign bonds. It is ideally appropriate to intervene in Europe through IMF.

Brazil finance minister Mantega also said that he refused to consider buying Eurobonds to help ease the euro zone debt crisis, which made the market suspicious of funding schemes for major emerging market economies to EFSF.

Mantega said in an interview with the media: "I believe that European countries do not need to buy eurozone bonds through Brazil to raise funds. Nor did Brazil consider that. Europe must find solutions to the European debt crisis from within Europe. Brazil will be willing to provide financial assistance to Europe through IMF. "

Zhu Guangyao, Vice Minister of finance of China, said that discussions on funding support to Europe through IMF to help them solve the debt crisis and stabilize the financial market have been ongoing. Premier Wen Jiabao has made it clear that China supports Europe's stability and that all options can be discussed.