By Joseph Alan: Subscribe to Joseph's RSS feed
September 28, 2011 11:00 AM EDT
Japanese Finance Minister Jun Azumi announced on Tuesday that his government is willing to shoulder a portion of the burden in connection with the rescue proposal for Greece if the EU can put together a logical plan to reduce market worries.
Euro zone countries must fulfill their commitment to se this in motion since it was one of the agreements made during the European summit conference on July 21.
CNBC reported that after the meetings between G20 and International Monetary Fund (IMF), Azumi called on each country to "respond to the rescue plan by obtaining approval from their respective parliaments."
The statement of Azumi came after Prime Minister Yoshihiko Noda was quoted in a press release that Tokyo was keen on purchasing more bonds issued by a European bailout fund to assuage apprehensions regarding the sovereign debt crisis in the Euro continent.
The euro finally went up on Monday at the trading halls and posted modest gains until Tuesday following speculations that European leaders have put their acts together and are collaborating to come up with a comprehensive plan that will restore European bank steadiness.
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One of the plans entails the issuance of bonds and utilizing the proceeds to acquire the debt of troubled European nations, according to the CNBC report.
It will include funds from the European Financial Stability Facility (EFSF), a bailout instrument designed in 2010 to deal with the crisis in Europe.
This tool will be created by the European Investment Bank, owned by one of the member states of the European Union.
These bonds issued by the special purpose vehicle will be used as collateral for borrowing from the European Central Bank enabling the central bank to make loans to banks confronted with liquidity shortages, bases on a report by the CNBC.
European economic leaders are currently working on how to reinforce the 440 billion euro rescue assistance.
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Weekly Roundup: Asian Markets Fall On Weak China Data And Euro Zone Debt Concerns
