🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

UPDATE 1-China offers $10 billion credit to boost Central Asia

Published 06/16/2009, 03:42 AM
Updated 06/16/2009, 03:48 AM

(Adds details)

By Chris Buckley

YEKATERINBURG, Russia, June 16 (Reuters) - Chinese President Hu Jintao on Tuesday offered Central Asian states $10 billion of credit support to help counter the global economic slump, telling a regional summit his country was on the right economic track.

"China will provide $10 billion in credit support so that the Shanghai Cooperation Organisation members can make their own efforts in countering the shock of the international financial crisis," Hu told leaders gathered in the Russian city of Yekaterinburg.

In a speech to the organisation summit, which brings together Central Asian states and neighbouring powers, Hu did not give any details of the credit offer.

Tian Qi, a Chinese Foreign Ministry official accompanying Hu, told Reuters after the speech that he had no additional details at hand.

Hu's gesture comes at a time when beleaguered economies across the region are looking to Beijing for purchases, investment and loan deals, raising hopes among some that China will lead the way in challenging U.S. economic dominance.

But Hu did not raise the proposals for diluting the dominance of the U.S. dollar that other leaders at the summit endorsed. Beijing, with its massive holdings of U.S. dollars and bonds, has been more careful about those ideas.

Hu said his country's economy was pulling through, despite the grim international scene.

"The international financial crisis continues to spread and deepen... The state of world financial developments remains grim, and many countries have fallen into economic slumps," he said.

Hu said of the growth stimulus steps taken by China: "Now these measures are showing initial results and producing positive signs."

Beijing's credit support for the Central Asian economies may come in return for greater access to oil, gas and other resources in the region to fuel China's economic growth.

Besides Russia and China, the SCO includes the ex-Soviet Central Asian republics of Kazakhstan, Uzbekistan, Tajikistan and Kyrgyzstan.

(Writing by Guy Faulconbridge; Editing by Kim Coghill)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.