China backs aid for Ukraine

China said on Saturday it backed IMF financial support for Ukraine, but expressed concern about the global lender's funding capacity given the failure of the U.S. Congress to ratify a program of reforms for the institution, Reuters reported. Chinese Vice Finance Minister Zhu Guangyao told a small group of Western journalists on the sidelines of the IMF-World Bank spring meetings in Washington it was a 'worry' that more than 85 percent of IMF lending was currently focused on Europe. Zhu highlighted the importance of reacting quickly to any problems that arise in regions outside Europe, adding: 'That is why IMF financial capacity has become so important.' Zhu said China was worried about the potential impact of the Ukraine crisis, especially on Europe, which was already facing risk from deflation. 'This is a geopolitical issue too. We hope that event of geopolitical risk won't cause a big shock for the global economy, particularly for ... Europe's economy.' 'That's why we support any action necessary to calm down the tension and to stabilize the economy, including Ukraine's economy,' Zhu said.