BRDO PRI KRANJU, Slovenia Oct 4 The European
Central Bank is ready to buy the bonds of euro zone member
countries that admit themselves into fiscal rehabilitation
programmes, ECB President Mario Draghi said on Thursday.
"Outright monetary transactions (bond buying) will enable us
to provide, under appropriate conditions, a fully effective
backstop to avoid disruptive scenarios with potentially severe
challenges for price stability in the euro area," Draghi said
after the bank kept euro zone interest rates at 0.75 percent.
"We are ready to undertake OMTs once all the prerequisites
are in place."
"As we said last month the Governing Council will consider
entering into OMTs to the extent they are warranted from a
monetary policy perspective as long as programme conditionality
is fully respected."
The ECB unveiled last month its plan to buy the sovereign
bonds of stricken euro members if they applied for aid from
their European partners and agreed to strict conditions for
Spain has been widely seen the primary candidate to apply
for such aid, but has so far resisted making the move.