The European Central Bank on Thursday unveiled details of a new programme to purchase an unlimited amount of the sovereign bonds of euro zone countries, but strictly within the bank’s policy mandate. ECB chief Mario Draghi said the bank would launch a scheme of “outright monetary transactions or OMTs in secondary markets for sovereign bonds in the euro area.” The programme, which would replace a previous much-contested one called SMP, would cover sovereign bonds with maturities of up to three years and would have strict conditions attached to it, said Draghi.

The bank has set no limit to the volume of bonds it will purchase under the new programme.

“As we said a month ago, we need to be in the position to safeguard the monetary policy transmission mechanism in all countries of the euro area,” said Draghi.

Draghi also reiterated his pledge to do “whatever it takes” to save the euro. “We will do whatever it takes” to keep the 17-nation block together, he said. “Unfounded fears are just what they are, unfounded.”

 Reuters and AFP