The Financial Times said on Wednesday the Chinese government and other Asian investors are expected to be strong portion of buyers for the Portuguese bail-out bonds with the European Financial Stability Facility (EFSF) begins auctioning them in June quoting senior fund officials.
The chief executive of the EFSF Klaus Regling told reporters on Wednesday that China was clearly interested in the Portuguese auctions as he said that the strong interest from Asia and international investors is renewed confidence in the future of the euro.
After the European Financial Stabilization Mechanism (EFSM) held successful auctions this week the EFSF will start in June to raise funds for the approved 78 billion euros bailout for Portugal. The facility will hold the first auction in mid-June at 3 billion to 5 billion euros for the fund's first 10-year bonds.
The second auction is expected by the end of June which will also raise up to 5 billion euros which will be of five-year bonds.