China will purchase bonds of the IMF $ 50 billion

China will buy the bonds for 50 billion dollars in the first issue of the International Monetary Fund (IMF), informs AP. This will help financial institutions to strengthen their capacity for borrowing, but Beijing will thus diversify their foreign investments. The agreement, which was announced yesterday by the IMF comes at a time when the financial institution is trying to raise funds to finance their lending, particularly developing countries, to help economies in the fight against recession. „Agreement provides a safe investment in China,“ said the statement by the IMF. „It will also enhance the capacity of the fund to help its members, particularly developing countries and to facilitate early recovery in the global economy.“ The purchase will also give China new opportunity to diversify their foreign investment outside the U.S. government bonds in which the country holds a large part of their foreign reserves. Brazil and Russia had indicated it would buy the bonds at $ 10 billion, according to the IMF.

––––––––––––––––– ––––––––––

Finance