Brics weigh buys of euro-denominated debt: eport

Brics weigh buys of euro-denominated debt: eport

Sao Paulo: The Brics major emerging markets may consider ramping up holdings of euro-denominated bonds in a bid to help European countries mired in a sovereign debt crisis, Brazilian newspaper Valor Economico reported on Tuesday, citing an unnamed monetary official.

There is still “no firm dialogue" about that possibility, the newspaper reported, noting that purchases could be limited to debt from the more financially solid European nations.

A decision could be made at a 22 September meeting of finance ministers and central bank presidents from Brazil, Russia, India, China and South Africa in Washington, Valor added.

Brazil’s finance minister, Guido Mantega, said the Brics nations would discuss the euro zone crisis next week, but added no details on what that help could entail.

“We’re going to meet next week in Washington and we’re going to talk about what to do to help the European Union get out of this situation," Mantega told reporters in Brasilia.

A euro zone debt crisis has roiled global markets for more than a year, with speculation mounting recently that Greece could default or even exit the 17-nation euro zone monetary union.

Central banks in Brazil and South Africa declined to comment on the story. The source in the report was not identified.