Cœuré: ECB ready for bond purchases if conditions met

28 November 2012

European Central Bank Executive Board member Benoît Cœuré said the European Central Bank is ready to buy sovereign bonds of eurozone countries that require assistance and agree to fiscal adjustment programmes.

The launch of the Outright Monetary Transactions (OMT) bond-buying programme has helped calm financial markets and bring down sovereign bond spreads for troubled countries, including Spain -- which the markets expects will seek a bailout. "Let me confirm that the ECB is ready to undertake OMTs whenever a country has successfully applied for an ESM precautionary assistance programme, with IMF involvement", Cœuré said

Cœuré also said a proposed single supervisory mechanism (SSM) would be key to the Europe's financial stability and to bolster financial integration in the region, saying political leaders were likely to agree on final details.

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