UK's Osborne on the Outlook for Nation's Growth

This is a transcript of top stories presented by China's CCTV Business Channel as produced by CNBC Asia Pacific.

Good evening, I'm Saijal Patel from CNBC and you're watching "Asia Market Daily".

Asian markets rallied today, as fears about the European debt crisis eased.

One economy that's holding up better than the rest is the UK — with the European Commission raising its GDP forecasts for Britain.

In an exclusive interview, CNBC's Maria Bartiromo asked Treasury Chief, George Osborne what the UK is doing right.


(SOT) George Osborne, UK Chancellor of the Exchequer

"Well, I think we've addressed two big questions which were hanging over the United Kingdom when this new government here took office in May. One was, can we pay our way in the world? I inherited as chancellor the largest budget deficit in the G20, and we've taken a series of steps, increased some taxes, consumption taxes, add some cuts in public expenditure, which have put us on a path to eliminate the structural deficit in a period of four years. So we've addressed that question, can Britain pay its way in the world. And indeed the credit rating agencies that have put us on negative watch, have taken us off and affirmed our AAA rating.

But we also addressed the other question which people were asking, which is okay, you could do that, but can you also grow? And the economic forecast for the UK, which were, as it happens, published yesterday, showed that the UK has got a path of sustainable growth over the next four years of about 2% a year. And I think some of the measures we've taken to, for example, reduce business taxes even at a time of fiscal consolidation have helped send that message that Briton is open for business."

Maria Bartiromo: Let me move on to the UK support of Ireland. What are the implications of the debt crisis on the UK?

(SOT) George Osborne, UK Chancellor of the Exchequer

"Well, Ireland is an economy which we are very closely connected with. And of course we have close political connections as well. It's the only country actually Britain shares a land border with in Northern Ireland, and the Irish banking system and the British banking systems have connections too. So it's clearly in the UK's interest that we have a stable Irish economy. Now, I think the package put together on Sunday will do that. The package that involves the IMF and other European countries and a bilateral loan from the UK, that will help take the sovereign out of the debt markets for a couple of years. It will also help fund a restructuring of the Irish banking system, which I judge to be absolutely key to the getting some stability into the Irish economy. And I thought it was important for the UK, although we didn't have to, to make a contribution to that package beyond just being an IMF shareholder and beyond being a member of the EU. And so we're offering a 3.25 billion pound bilateral loan to the Irish and I expect it to be taken up as part of that international package."

Maria Bartiromo: Would the same term be offered to the Portuguese?

(SOT) George Osborne, UK Chancellor of the Exchequer

"Well, I have said that Ireland is a very special case. Now, I put the emphasis on very special case. I've stressed the connections between the UK and Ireland. Of course, for any future package offered to any future country, and I'm not speculation about who that might be in the future. We're important members of the IMF and that's where we could provide support."


That wraps up "Asia Market Daily".

I'm Saijal Patel from CNBC.

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