ECB's Draghi says that its monetary policy measures are just a backstop

European Central Bank (ECB) president Mario Draghi has said that the Outright Monetary Transactions (OMT) measure is an effective backstop and ready to be activated.

Dodging the question about when the OMT documentation will become available, Draghi said this would become available when it exists. This documentation has failed to materialise for some time, suffering from successive delays.

Draghi said this is one of several backstops that exist in principle, including national backstops and the possibility that individual countries can apply to the European Stability Mechanism (ESM) in order to recapitalise their banks from within the rules of an ESM programme.

The last backstop being direct ESM recapitalisation of banks. This would only become available after the ECB has taken its role after the Single Supervisory Mechanism (SSM) is set up.