India may consider supporting eurozone financing: Mukherjee

02 Nov 2011 Evaluate

In order to restore resilience in the markets over Europe's debt crisis, Finance Minister Pranab Mukherjee said, India may consider supporting extra financing for the Eurozone only if European policy makers make a credible assessment of its solvency problems.

He said, 'our assessment of the situation is 'let them make a credible assessment of the solvency issue, try to sort out those problems, and thereafter supplementary financing could be considered.' However, finance minister did not comment when asked on the issue of India buying European Financial Stability Facility bonds.

French President Nicolas Sarkozy has been trying to get support from emerging economies such as China to get financial support for the eurozone by investing in an expanding bailout funds. France is hosting summit of G20 leaders in Cannes.

Before leaving for France for summit, Prime Minister Manmohan Singh said much more needed to be done to restore confidence in the markets over Europe’s debt crisis. By adding further he said, 'it is imperative that the difficult decisions needed to address the economic challenges in Europe and elsewhere are taken swiftly.'

Further, Greek Prime Minister George Papandreou won the support of his cabinet today, to go ahead with a referendum and the government said would take place as soon as possible on a European Union bailout deal. Greece’s decision to hold a popular vote has pummeled Euro and global stocks.

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