LISBON, Nov 4 (Reuters) - Portugal has made a major effort to diversify the pool of investors in its sovereign debt and the government sees closer financial ties with China as a “strategic priority”, Treasury Secretary Carlos Pina said on Thursday.
He spoke ahead of Saturday’s visit by Chinese President Hu Jintao. Some local media have said there are hopes for a repeat of Chinese promises of investment and debt purchases to help the ailing Greek economy last month.
“We have felt openness and it is a relationship we want to intensify, so we are not surprised with the increased presence of Chinese financial institutions in our debt market,” Pina wrote in an e-mailed reply to questions from Reuters.
He would not comment on whether China had any concrete plans to buy Portuguese debt. Investor concerns that Portugal may fail to rein in its budget deficit and debt have caused its debt premiums to spike.
But Pina said he had “no doubts” the country will meet its budget deficit targets of 7.3 percent of GDP this year and 4.6 percent next year, expecting the government and the opposition to cooperate to resolve problems with the country’s financing. (Reporting by Sergio Goncalvesl editing by Catherine Evans)
