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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 covering 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, to a new total of €1,850 billion. All asset categories eligible for purchase under the existing asset purchase programme (APP) are also eligible under the PEPP, and the eligibility requirements have been waived 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 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, and across asset classes and jurisdictions will continue to support the smooth transmission of monetary policy.

On 16 December 2021 the Governing Council decided to discontinue net asset purchases under the PEPP at the end of March 2022. At the same time, the Governing Council decided that the maturing principal payments from securities purchased under the PEPP would be reinvested until at least the end of 2024, and the future roll-off of the PEPP portfolio would be managed to avoid interference with the appropriate monetary stance.

On 14 December 2023 the Governing Council announced that it intends to continue to reinvest, in full, the principal payments from maturing securities purchased under the PEPP during the first half of 2024 and to reduce the PEPP portfolio by €7.5 billion per month on average over the second half of the year. At the same time, the Governing Council announced that it intends to discontinue reinvestments under the PEPP at the end of 2024.

Weekly changes are reported below and in the Eurosystem weekly financial statement. Full historical data are available in the Statistics section of the ECB's website under 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 1,660,945
Date 12 July 2024
* Updated weekly, at amortised cost
Monthly and cumulative net purchases of debt securities under the PEPP
Book value as at end-June 2024 (EUR millions) Cumulative net purchases as at end-May 2024 Monthly net purchases in June 2024 Cumulative net purchases* (EUR millions)
PEPP 1,713,695 16 1,713,711
* 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.

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-Mar 2024 0 6,033 45,846 0 1,610,284 1,662,164
Net purchases Apr 24 - May 24 0 0 75 0 -87 -12
Quarter-end amortisation adjustment and redemptions of coupon STRIPS 0 0 0 0 0 0
Holdings* as at end-May 2024 0 6,033 45,921 0 1,610,197 1,662,152

*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.

Bimonthly breakdown of public sector securities under the PEPP
(EUR millions) Net purchases Apr 24 - May 24 Cumulative net purchases as at end-May 24* Current WAM of public sector securities holdings under the PEPP** WAM of eligible universe of public sector securities under the PEPP as at end-May 2024**
Austria 816 45,191 6.50 7.91
Belgium 1,064 58,646 5.70 9.28
Cyprus 0 2,468 7.74 8.19
Germany -1,453 391,740 6.75 7.26
Estonia 0 256 6.03 6.89
Spain -3,250 192,475 7.15 7.45
Finland -67 26,177 6.85 7.66
France -580 294,438 7.18 7.90
Greece -858 38,490 8.45 9.55
Ireland 272 25,047 8.82 9.19
Italy -413 288,798 7.35 6.91
Lithuania 19 3,234 8.94 8.57
Luxembourg 0 1,886 5.51 7.75
Latvia -146 1,766 8.01 7.28
Malta 1 609 9.14 7.65
Netherlands 1,847 82,586 7.07 9.40
Portugal 494 31,403 7.55 7.58
Slovenia 54 6,693 7.81 8.29
Slovakia 112 8,155 7.70 8.22
Supranationals 2,000 161,192 9.47 9.07
Total -87 1,661,251 7.33 7.76
       
* Cumulative net purchases 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.
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 mil. * 0 0 1,299 4,734 14,836 31,085 0 0
Share * 0.00% 0.00% 21.53% 78.47% 32.31% 67.69% 0.00% 0.00%
Date 31-May-2024
* End of month, at amortised cost

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