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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. The Governing Council decided to increase the initial €750 billion envelope for the PEPP by €600 billion on 4 June 2020 and by €500 billion on 10 December, for a new total of €1,850 billion. All asset categories eligible under the existing asset purchase programme (APP) are also eligible under the PEPP, as well as a waiver of the eligibility requirements has been granted for securities issued by the Greek Government.

In addition, the eligibility of non-financial commercial paper under the corporate sector purchase programme (CSPP) was expanded to include securities with a remaining maturity of at least 28 days. These securities can be purchased under both the CSPP and the PEPP. Previously, only commercial paper with a remaining maturity of at least six months had been eligible for purchase under the 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 Eurosystem capital key of the national central banks. At the same time, purchases will be conducted in a flexible manner on the basis of market conditions and with a view to preventing a tightening of financing conditions that is inconsistent with countering the downward impact of the pandemic on the projected path of inflation. The flexibility of purchases over time, across asset classes and among jurisdictions will continue to support the smooth transmission of monetary policy.

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 March 2022. The maturing principal payments from securities purchased under the PEPP will be reinvested until at least the end of 2023. 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 780,732
Date 15 January 2021
* Updated weekly, at amortised cost
Monthly and cumulative net purchases of debt securities under the PEPP
Book value as at end-December 2020 (EUR millions) Cumulative net purchases as at end-November 2020 (EUR millions) Monthly net purchases in December 2020 (EUR millions) Cumulative net purchases*
PEPP 700,003 57,163 757,166
* 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-September 2020 0 3,123 20,418 31,988 510,112 565,461
Net purchases October-November 2020 0 0 342 -7,682 140,160 132,820
Quarter-end amortisation adjustment and redemptions of coupon STRIPS 0 0 0 0 0 0
Holdings as at end-November 2020* 0 3,123 20,760 24,306 650,272 698,461

*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-November 2020
(EUR millions)
Net purchases October-November 2020 Cumulative net purchases as at end-November 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-November 2020**
Austria 3,953 17,567 10.93 7.07
Belgium 4,918 22,197 6.29 9.43
Cyprus 290 1,484 10.86 8.33
Germany 35,571 160,619 4.83 6.73
Estonia 14 207 9.08 7.51
Spain 16,099 77,128 8.47 7.43
Finland 2,480 11,169 7.24 6.96
France 27,573 111,810 8.61 7.25
Greece 3,341 16,307 8.38 9.36
Ireland 2,288 10,317 8.85 9.55
Italy 22,927 118,169 6.82 6.85
Lithuania 92 2,080 11.78 10.60
Luxembourg 250 1,244 7.13 6.38
Latvia 70 907 9.07 10.27
Malta 23 261 7.46 8.13
Netherlands 7,911 35,705 4.08 7.25
Portugal 3,159 14,809 6.78 6.62
Slovenia 650 3,131 8.31 9.53
Slovakia 369 4,707 7.78 8.16
Supranationals 8,180 41,991 8.90 7.58
Total 140,160 651,810 6.98 7.23

* 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 2,566 8,842 11,918 20,001 4,305
Share * 0.00% 0.00% 17.84% 82.16% 42.59% 57.41% 82.29% 17.71%
Date 30-Nov-2020
* End of month, at amortised cost

History of private sector primary/secondary market breakdown