ECB decides on detailed modalities for reducing asset purchase programme holdings

- PRESS RELEASE

Metadata

Provider: 

ECB

URL: 

https://www.ecb.europa.eu//press/pr/date/2023/html/ecb.pr230202~1a4ecbe398.en.html

Retrieved on: 

Saturday, February 4, 2023

Information

Tags: 

Personal ordinariate, Paris Agreement, PSPP, Communication, Frankfurt, Eurosystem, Climate, APP, Partial, Governing Council of the European Central Bank, Paris, Prejudice, ECB, Goal, Dividend reinvestment plan, European Central Bank, Reproduction, Time, Security (finance)

Geotags: 

GERMANY

Summary

Key Points: 

• - PRESS RELEASE
  ECB decides on detailed modalities for reducing asset purchase programme holdings
  2 February 2023
  - ECB details modalities to reduce Eurosystem’s holdings of securities under the asset purchase programme through partial reinvestment, broadly in line with current practice under full reinvestment
  - Governing Council decided on stronger tilting of corporate bond purchases during partial reinvestment, including in primary market, towards issuers with better climate performance
  As communicated in December, from the beginning of March 2023, the asset purchase programme (APP) portfolio will decline at a measured and predictable pace, as the Eurosystem will not reinvest all of the principal payments from maturing securities.
• On the basis of the December decision, the Governing Council today decided on the detailed modalities for reducing the Eurosystem’s holdings of securities under APP through the partial reinvestment of the principal payments from maturing securities.
• The remaining reinvestment amounts will be allocated proportionally to the share of redemptions across each constituent programme of the APP, i.e.
• the public sector purchase programme (PSPP), the asset-backed securities purchase programme (ABSPP), the third covered bond purchase programme (CBPP3) and the corporate sector purchase programme (CSPP).

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