China diplomat: nothing concrete on investing in EFSF vehicle

BRUSSELS Wed Oct 26, 2011 10:10am BST

BRUSSELS Oct 26 (Reuters) - China has backed efforts to tackle the euro zone's debt crisis but there is currently nothing concrete concerning support for a special purpose investment vehicle (SPIV) of the euro zone's bailout fund, a Chinese diplomat said on Wednesday.

"China always supported the EU's effort to deal with the crisis and has done its bit," said the diplomat, who is based in Brussels. "China will continue to do so but, with regard to the special purpose vehicle, there is nothing concrete and detailed."

Euro zone leaders are expected to approve a plan on Wednesday to increase the firepower of the 440 billion euro EFSF bailout fund, without euro zone countries having to put more money into it.

Under the plan, a special purpose investment vehicle could be set up by the EFSF to buy up the distressed debt of euro zone governments. The SPIV would be open to private capital, sovereign wealth funds and the IMF.