Economy

China eyeing major Greek investments: report

(Agencies)
Updated: 2010-06-15 15:11

China is eyeing investments valued at several billion euros in Greek shipping, logistics and airport projects, as the European nation battles to slash its massive debt, a report said Tuesday.

The news came as Moody's downgraded Greek debt on Monday night by four notches to junk. The debt is already rated junk by other agencies. Athens rejected the move and said it had taken significant steps to balance its books.

The investment deals are due to be signed on Tuesday during a visit to Athens by Chinese Vice-Premier Zhang Dejiang, the Financial Times reported, citing an unnamed Greek government official.

"These concern maritime affairs, telecoms and a project to renovate a landmark tower building in Athens' port of Piraeus," the official said.

Other deals including shipbuilding pacts worth €500 million ($615 million) will also be signed, the report said.

Related readings:  Moody's cuts Greek rating to junk  Investors expect Greek default  Calls for a Greek pullout ludicrous  China's Cosco says will not halt Greek investment

Greece is rushing to attract investment from countries with big sovereign wealth funds - such as China - to help revive economic growth as it tackles an unprecedented fiscal crisis.

China's state shipping company Cosco controls two container terminals at Piraeus under a €3.4 billion 35-year concession deal.

Not all attempts to attract Chinese investment have succeeded. This year, a deal for Chinese banks to buy €20 billion of long-term bonds collapsed when Athens refused to sell a stake in National Bank of Greece, the country's biggest lender, as part of the agreement.