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Pandemic emergency purchase programme (PEPP)

The ECB’s pandemic emergency purchase programme (PEPP) is a non-standard monetary policy measure initiated in March 2020 to counter the serious risks to the monetary policy transmission mechanism and the outlook for the euro area posed by the coronavirus (COVID-19) outbreak.

The PEPP is a temporary asset purchase programme of private and public sector securities. On 4 June 2020 the Governing Council decided to increase the €750 billion envelope for the PEPP by €600 billion to a total of €1,350 billion. All asset categories eligible under the existing asset purchase programme (APP) are also eligible under the new programme. Under the PEPP, a waiver of the eligibility requirements will be granted for securities issued by the Greek Government. In addition, non-financial commercial paper is now eligible for purchases both under the PEPP and the corporate sector purchase programme (CSPP). The residual maturity of public sector securities eligible for purchase under the PEPP ranges from 70 days up to a maximum of 30 years and 364 days.

For the purchases of public sector securities under the PEPP, the benchmark allocation across jurisdictions will be the capital key of the national central banks. At the same time, purchases will be conducted in a flexible manner. This allows for fluctuations in the distribution of purchase flows over time, across asset classes and among jurisdictions.

The Governing Council will terminate net asset purchases under the PEPP once it judges that the COVID-19 crisis phase is over, but in any case not before the end of June 2021. The maturing principal payments from securities purchased under the PEPP will be reinvested until at least the end of 2022. In any case, the future roll-off of the PEPP portfolio will be managed to avoid interference with the appropriate monetary stance.

Weekly changes are reported below and in the Eurosystem weekly financial statement. Full historical data are available in the Statistics section under Data on daily liquidity conditions.

Securities purchased under the monetary policy portfolios are made available for securities lending to support market liquidity and collateral availability in the market.

PEPP holdings*
EUR millions 526,643
Date 11 September 2020
* Updated weekly, at amortised cost
Monthly and cumulative net purchases of debt securities under the PEPP
Book value as at end-August 2020 (EUR millions) Cumulative net purchases as at end-July 2020 (EUR millions) Monthly net purchases in August 2020 (EUR millions) Cumulative net purchases*
PEPP 440,409 59,466 499,876
* Cumulative monthly net purchases figures represent the difference between the acquisition cost of all purchase operations and the redeemed nominal amounts.
Note: Figures may not add up due to rounding. Figures are preliminary and may be subject to revision. The monthly purchase volumes are reported on a settlement basis and net of redemptions.

History of monthly net purchase under the PEPP

The table presents the Eurosystem holdings at the end of the bimonthly period and a breakdown of the change in Eurosystem holdings.

Eurosystem holdings under the pandemic emergency purchase programme
Changes in holdings in EUR millions Asset-backed securities Covered bonds Corporate bonds Commercial paper Public sector securities Total
Holdings* as at end-May 2020 0 2,099 10,579 35,384 186,603 234,665
Net purchases June-July 2020 0 1,031 7,043 -544 198,214 205,744
Quarter-end amortisation adjustment and redemptions of coupon STRIPS 0 -2 -2 6 -353 -352
Holdings as at end-July 2020* 0 3,128 17,620 34,845 384,464 440,057

*End-of-period book value at amortised cost.

Figures may not add up due to rounding. Figures are preliminary and may be subject to revision.

Amortisation adjustments are made at the end of each quarter. The amortisation results from an accounting principle that implies that securities purchased at prices below face value have to be revalued upwards over time towards maturity, and revalued downwards over time if purchased at prices above face value. STRIPS are accounted for at the end of each month.

History of PEPP purchases broken down by asset category

Bimonthly breakdown of public sector securities under the PEPP
Book value as at end-July 2020
(EUR millions)
Net purchases June-July 2020 Cumulative net purchases as at end-July 2020* Current WAM of public sector securities holdings under the PEPP** WAM of eligible universe of public sector securities under the PEPP as at end-July 2020**
Austria 5,142 10,056 10.01 7.33
Belgium 6,392 12,853 5.83 9.27
Cyprus 455 936 11.79 8.31
Germany 46,266 93,016 3.97 6.60
Estonia 163 163 9.30 7.29
Spain 23,719 46,111 8.18 7.40
Finland 3,225 6,456 7.56 7.07
France 35,845 59,420 9.05 7.07
Greece 5,256 9,946 8.62 9.07
Ireland 2,972 5,972 8.31 9.29
Italy 36,067 73,432 7.00 6.72
Lithuania 543 1,593 9.21 10.92
Luxembourg 348 807 6.56 5.74
Latvia 391 787 9.88 9.08
Malta 0 123 6.33 8.02
Netherlands 10,285 20,674 3.60 7.36
Portugal 4,655 8,805 7.14 6.81
Slovenia 958 1,896 6.84 8.71
Slovakia 1,487 3,790 7.17 8.13
Supranationals 14,045 27,980 8.23 7.23
Total 198,214 384,817 6.71 7.12

* Cumulative net purchase figures represent the difference between the acquisition cost of all purchase operations and the redeemed nominal amounts.

** Remaining weighted average maturity (WAM) in years.

Notes: Figures may not add up due to rounding. Figures are preliminary and may be subject to revision. The purchase volumes are reported on a settlement basis and net of redemptions.

History of public sector securities cumulative purchase breakdowns under the PEPP

Bimonthly breakdown of private sector securities under the PEPP
Asset class Asset-backed securities Covered bonds Corporate bonds Commercial paper
Market Primary Secondary Primary Secondary Primary Secondary Primary Secondary
EUR millions * 0 0 557 2,571 8.489 9,131 29,646 5,199
Share * 0.00% 0.00% 17.81% 82,19% 48.18% 51.82% 85.08% 14.92%
Date 31-July-2020
* End of month, at amortised cost

History of private sector primary/secondary market breakdown