* Says BRICS have divergent views on Euro debt issue
* Says wrong to put big hopes on China
* China has yet to confirm steps to support Europe
By Benjamin Kang Lim and Zhou Xin
BEIJING, Sept 22 Brazil's proposal that large
emerging economies jointly provide new funds to help ease the
crisis in the euro zone is not feasible, Wei Jianguo, a former
Chinese vice commerce minister, told Reuters on Thursday.
South Africa's Finance Minister Pravin Gordhan said earlier
that BRICS countries, namely Brazil, Russia, India, China and
South Africa, will talk about the idea at Thursday's Washington
meeting of emerging economies.
But Wei, now head of the China Centre for International
Economic Exchanges (CCIEE), a top government think-tank, said in
an interview that it would be difficult to carry out due to
differences among the BRICS countries.
"It's just an idea, and in my view it's very hard to put it
into practice," Wei said.
Wei, who advises the Chinese government on policy but has no
direct involvement in the decision-making for this issue, said
the plan neglects huge differences among emerging markets.
"(BRICS) countries are in different development stages with
different foreign exchange reserve management systems, and they
have different ideas and preferred approaches to address the
euro debt crisis," he said.
"They are unlikely to reach a unified plan."
Under Brazil's proposal, BRICS countries would make billions
of dollars in new funds available to the International Monetary
Fund (IMF) as a way to help ease the crisis in the euro zone.
Russian Finance Minister Alexei Kudrin told reporters that
countries that hold substantial reserves may assist in bailing
out the euro zone's debt-ridden states "on certain conditions".
With about a quarter of its $3.2 trillion foreign exchange
reserves in euros, China has repeatedly voiced confidence in the
euro zone, but Beijing has been reluctant to confirm concrete
steps it would take to support Europe.
China's foreign exchange reserves are three times bigger
than those of the four other BRICS countries combined.
However, Wei said Europe should not put too much hope on
China that Beijing would purchase a lot of euro bonds.
"Europe should absolutely not put too high of expectations
on China," Wei said.
He added that the euro debt crisis has deep-rooted causes,
namely a lack of coordinated fiscal policies within a currency
"If this problem persists, more problems will emerge even if
the current crisis can be overcome," he said.
"That's not something that can be solved by a BRICS fund,"
(Editing by Don Durfee and Ken Wills)