* EU could send mission to Brazil to ask for help-report
* Markets rose sharply on Thursday on Europe debt deal
SAO PAULO, Oct 28 Brazil's government could
help euro zone nations mired in a debt crisis but would likely
limit its aid to a bilateral agreement with the International
Monetary Fund, a local newspaper reported on Friday.
Latin America's largest economy does not intend to directly
help boost the European Financial Stability Facility to 1
trillion euros, newspaper Valor Economico reported on Friday,
without citing a source.
The government of President Dilma Rousseff is waiting for
more details of the European agreement to make a decision,
Valor added. Brazil would only use a slice of its international
reserves if the euro zone plan is solid and effective, Valor
Newspaper O Estado de S. Paulo also reported that the
European Union plans to send a mission to Brazil to ask the
country for help in the rescue plan, which boosted global
markets sharply on Thursday as investors saw the euro zone
avoiding a disastrous collapse.
No date has been set for the trip, Estado said.
However the European Financial Stability Facility, through
a spokesman, denied the trip was imminent and said the report
was not true.
Attempts to reach Brazil's Finance Ministry and the
presidency for comment were not immediately successful.
Euro zone leaders struck a deal on Thursday to contain the
currency bloc's two-year-old debt crisis. However, they are now
under pressure to finalize the details of their plan to slash
Greece's debt burden and strengthen their rescue fund.
After a summit in Brussels, governments announced an
agreement under which private banks and insurers would accept
50 percent losses on their Greek debt holdings in the latest
bid to cut Athens' debt load to sustainable levels.
Brazilian officials in recent days have tiptoed around the
issue of financing a European bailout. While the move would
cement Brazil's growing role as a global economic power, the
country faces limitations on using its reserves to buy
Earlier this year, Brazil floated a plan to buy European
debt along with members of the powerhouse BRICS group of
emerging markets, comprising also Russia, China, India and
South Africa, but backed away after a tepid response from the