BRICS countries need to more than buy Euro bonds: Lagarde

IMF Managing Director Christine Lagarde has welcomed the idea of emerging economies coming to the aid of heavily indebted European Union countries amidst reports that China may be looking to invest in Italy and the BRICS  countries offering to invest in Euro bonds.

The IMF chief said while the role reversal is a welcome development, it is also not against IMF policies.  However, she said, if they confine to purchase of German or British bonds, it would not have any immediate impact on the eurozone as a whole.

Lagarde's comments come after Brazilian finance minister Guido Mantega said on Tuesday that the leaders of BRICS (Brazil, Russia, India, China and South Africa) nations would discuss possible aid to the European Union.

"The BRICS' interest is an interesting development," Lagarde told the Italian daily La Stampa.

"But if they limit themselves to buying bonds deemed safe by everyone, such as the German and British (bonds), they wouldn't be taking much risk. My hope is that if interventions like this take place that they'll be large and not limited to certain states," she said.

Mantega said officials of the BRICS countries would meet in Washington ahead of next week's IMF meeting to discuss ways of helping the EU out of the credit crisis.