Although Moody’s Investors Service downgrading ratings of Greece of public debt to “junk” on June 14, Vice Premier of China Zhang Dejiang has signed 14 trade agreements with the deputy prime minister of Greece, Theodoros Pangalos in Athens, Greek Kathimerni daily reports.

More offers from Greece and China were also discussed during the meeting, the report said. Dejiang later met Greek Prime Minister George Papandreou and President Karolos Papoulias.

The meetings follow Moody’s concern that the country could fail to meet their obligations to reduce its deficit and pay debts. The agency noted the “considerable uncertainty” about the impact of measures introduced to reduce the country’s astronomical budget deficit. Greece, which initially said there was a deficit of 12.7 percent, will have to cut a much larger one, reaching 14 percent of GDP, less than three percent for 2014.

Despite the apparently serious economic prospects, the Greek Government received a boost when Chinese Vice Premier agreed to ink investment deals with Greece 14.

“The Chinese government will encourage businessmen to come to Greece to make alliances and investments. We are convinced that Greece is able to overcome the crisis and return to stable growth,” said Dejiang Kathimerini as saying.

One agreement is a memorandum of understanding “between China and Greece in the shipping industry, which” provide favorable rates for chartering vessels Greeks, “the report said. Seven of the contracts between the Chinese shipping giant Cosco and Greek shipowners for the construction of new vessels and the chartering of Greek vessels.

Agreements were also signed between the Chinese group and Plaza BCEGI Helios Greece for the construction of a large resort hotel in Piraeus. In addition, OTE telecommunications reached an agreement with China’s Huawei Technologies. Four Chinese food companies are also to start the import of Greek olive oil.

Papandreou has also signed a memorandum of understanding with Libyan leader Muammar Gaddafi strategic issues related to energy, construction, agriculture and tourism, the Greek national TV channel ET1 reported on June 10, 2010.

This means that Greece will be among the first countries to benefit from the package of 200 billion U.S. dollars Libya has allocated to investment in the European Union.

Both countries have drawn up plans for the creation of companies to facilitate and strengthen cooperation in telecommunications, infrastructure projects, pharmaceutical production and food production.