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Monti Seeks ECB Bond Purchases at Behest of Euro Fund, FTD Says

Italian Prime Minister Mario Monti’s bond-purchasing plan envisions the European Central Bank buying sovereign debt at the behest of the euro bailout fund, Financial Times Deutschland reported.

The bailout fund -- either the current European Financial Stability Facility or the permanent European Stability Mechanism -- would in return guarantee a portion of the ECB’s debt purchases against losses, the newspaper said, citing two unidentified euro-area officials.

The proposal will be discussed by euro finance ministers today in Luxembourg as well as the leaders of Germany, France, Italy and Spain tomorrow at a four-way summit in Rome, FTD said. Monti’s plan has so far been framed as the EFSF or ESM making such purchases with its resources, the newspaper said.

To contact the reporter on this story: Patrick Donahue in Berlin at pdonahue1@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net

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