HONG KONG Nov 28 The European Central Bank is
ready to buy sovereign bonds of euro zone countries that require
assistance and agree to fiscal adjustment programmes, European
Central Bank Executive Board member Benoit Coeure said on
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
"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,"
Coeure said prepared remarks for the third annual Thomson
Reuters Pan-Asian Regulatory Summit.
Coeure 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 next month.
"I am confident that European leaders can agree in December
on the final features of the SSM and confirm that it will start
legally in January 2013 and operationally in 2014," he said.
Coeure said the ECB remained committed to promptly
implementing the Basel III bank capital rules that are due to be
phased in from January 2013, saying they were "a cornerstone of
the G20 reform agenda".
U.S regulators have cast doubt on that implementation date,
prompting European banks to seek a delay so they are not at a
"Delayed implementation of Basel II.5 and Basel III by any
major jurisdiction would weaken the incentives for financial
institutions to comply and also cast serious doubt on the
overall reform effort," Coeure said.