CORRECTED – No talks on euro zone rescue fund buying debt -sources

(Corrects eighth paragraph to show EU leaders meeting this
week, not next week)

BRUSSELS, Dec 13 (BestGrowthStock) – The euro zone is not discussing
making changes to the European Financial Stability Facility
(EFSF) or the scope of its operations, including purchases of
bonds, euro zone sources said on Monday.

The Financial Times reported on Monday that European
officials were considering plans to overhaul the EU’s portion of
the 750-billion-euro EU/IMF-backed fund and use it to buy the
sovereign bonds of distressed governments.

“This is not being seriously considered,” one senior euro
zone source said.

Such a step would make it easier to aid debt-laden countries
without resorting to fully-fledged bailouts, the newspaper said,
citing people involved with the deliberations.

“There are no changes to the EFSF or its remit under
discussion,” a second senior euro zone source said.

Only the European Central Bank has so far purchased bonds of
embattled peripheral euro zone countries such as Ireland and
Portugal to lower their borrowing costs, a move that proved
controversial even within the bank itself.

The FT also reported that the EFSF, which is set to be
replaced by a permanent fund in 2013, could be modified to
provide short-term credit to countries struggling to borrow on
the market but not in need of a multi-year bailout package.

European Union leaders will agree this week to insert two
sentences into the EU treaty to pave the way for the creation of
the European Stability Mechanism from 2013, draft conclusions of
the summit showed on Saturday. [ID:nLDE6BA0BE]

(Reporting by Jan Strupczewski, editing by Luke Baker and
Toby Chopra)

CORRECTED – No talks on euro zone rescue fund buying debt -sources