Plans of central bankers and civic leaders in Europe to confront the voracious appetite of the sovereign debt crisis are slowly emerging and might be implemented within a matter of weeks, Bloomberg reports.
Spanish and Italian bonds will be acquired by the European Central Bank if governments within the 17-nation bloc buy direct from those two nations' treasuries with the objective of helping navigate rougher economic times. Mario Draghi, president of the central bank of Europe, disclosed some aspects of the effort, which is likely to begin within weeks but could face regional obstacles.
"The big bazooka is Draghi's implied promises, which have not been delivered upon," strategist Marc Ostwald with Monument Securities in London told the news source. "Markets are saying this is all talk, there's nothing concrete."
The sovereign debt crisis has been alive and well for nearly three years, causing several euro zone nations to seek bailout funding as it attacks the countries' banks, markets and public finance systems.
Draghi reportedly revealed some aspects of the plan late last week while speaking on Thursday after policy makers with the institution he leads convened for a summit, according to The New York Times.
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