PRESS RELEASE
22 January 2015 - ECB
announces expanded asset purchase programme
- ECB expands purchases to include bonds issued by
euro area central governments, agencies and European institutions
- Combined monthly asset purchases to amount to €60
billion
- Purchases intended to be carried out until at
least September 2016
- Programme designed to fulfil price stability
mandate
The Governing Council of the European Central Bank (ECB) today announced an
expanded asset purchase programme. Aimed at fulfilling the ECB’s price
stability mandate, this programme will see the ECB add the purchase of
sovereign bonds to its existing private sector asset purchase programmes in
order to address the risks of a too prolonged period of low inflation.
The Governing Council took this decision in a situation in which most
indicators of actual and expected inflation in the euro area had drifted
towards their historical lows. As potential second-round effects on wage and
price-setting threatened to adversely affect medium-term price developments,
this situation required a forceful monetary policy response.
Asset purchases provide monetary stimulus to the economy in a context where
key ECB interest rates are at their lower bound. They further ease monetary and
financial conditions, making access to finance cheaper for firms and
households. This tends to support investment and consumption, and ultimately
contributes to a return of inflation rates towards 2%.
The programme will encompass the asset-backed securities purchase programme
(ABSPP) and the covered bond purchase programme (CBPP3), which were both
launched late last year. Combined monthly purchases will amount to €60 billion.
They are intended to be carried out until at least September 2016 and in any
case until the Governing Council sees a sustained adjustment in the path of
inflation that is consistent with its aim of achieving inflation rates below,
but close to, 2% over the medium term.
The ECB will buy bonds issued by euro area central governments, agencies
and European institutions in the secondary market against central bank money,
which the institutions that sold the securities can use to buy other assets and
extend credit to the real economy. In both cases, this contributes to an easing
of financial conditions.
The programme signals the Governing Council’s resolve to meet its objective
of price stability in an unprecedented economic and financial environment. The
instruments deployed are appropriate in the current circumstances and in full
compliance with the EU Treaties.
As regards the additional asset purchases, the Governing Council retains
control over all the design features of the programme and the ECB will
coordinate the purchases, thereby safeguarding the singleness of the
Eurosystem’s monetary policy. The Eurosystem will make use of decentralised
implementation to mobilise its resources.
With regard to the sharing of hypothetical losses, the Governing Council
decided that purchases of securities of European institutions (which will be
12% of the additional asset purchases, and which will be purchased by NCBs)
will be subject to loss sharing. The rest of the NCBs’ additional asset
purchases will not be subject to loss sharing. The ECB will hold 8% of the
additional asset purchases. This implies that 20% of the additional asset
purchases will be subject to a regime of risk sharing.
For media queries, please contact Stefan
Ruhkamp, tel.: +49 69 1344 5057.
Notes:
A technical annex is published alongside this press release with further
operational details.
TECHNICAL ANNEX
ECB ANNOUNCES OPERATIONAL MODALITIES OF THE EXPANDED ASSET PURCHASE PROGRAMME
The expanded asset purchase programme will
comprise the ongoing purchase programmes for asset-backed securities (ABSPP)
and covered bonds (CBPP3), and, as a new element, purchases of additional
euro-denominated securities that meet the following eligibility criteria:
- They fulfil the collateral eligibility criteria
for marketable assets in order to participate in Eurosystem monetary
policy operations, as specified in Guideline ECB/2011/14, as amended,
subject to the fulfilment of the additional criteria listed in points 2-4
below.
- They are issued by an entity established in the
euro area classified in one of the following categories: central
government, certain agencies established in the euro area or certain
international or supranational institutions located in the euro area.
- They have a first-best credit assessment from an
external credit assessment institution of at least CQS3 for the issuer or
the guarantor, provided the guarantee is eligible in accordance with
Guideline ECB/2011/14, as amended.
- Securities that do not achieve the CQS3 rating
will be eligible, as long as the Eurosystem’s minimum credit quality
threshold is not applied for the purpose of their collateral eligibility. Moreover, during reviews in the
context of financial assistance programmes for a euro area Member State,
eligibility would be suspended and would resume only in the event of a
positive outcome of the review*.
Inflation-linked and floating rate securities issued by central
governments, certain agencies established in the euro area and certain
international or supranational institutions located in the euro area are
eligible for purchase under the expanded asset purchase programme.
All eligibility criteria and other modalities of the ABSPP and CBPP3 remain
unaltered under the programme. In addition it was decided that:
- Securities purchased under the expanded asset
purchase programme that are not covered by the ABSPP or CBPP3 must have a
minimum remaining maturity of 2 years and a maximum remaining maturity of
30 years at the time of purchase.
- Securities purchased under the expanded asset
purchase programme that are not covered by the ABSPP or CBPP3 will be
subject to an issue limit, an aggregate holding limit and other
operational modalities specified, in particular, with the aim of
preserving market functioning and allowing the formation of a market price
on a given security. Moreover, the limits ensure that the application of
collective action clauses for a bondholder decision is not obstructed.
- Regarding creditor treatment, the Eurosystem
accepts the same (pari passu) treatment as private investors with respect
to securities purchased by the Eurosystem, in accordance with the terms of
such securities.
- Purchases of securities under the expanded asset
purchase programme that are not covered by the ABSPP or CBPP3 will be
allocated across issuers from the various euro area countries on the basis
of the ECB’s capital key.
- Holdings of securities issued by central
governments, certain agencies established in the euro area and certain
international or supranational institutions located in the euro area will
be valued at amortised cost, in line with Guideline ECB/2010/20 on the
legal framework for accounting and financial reporting in the ESCB, as
amended.
- The eligible counterparties for purchases shall
be those eligible for the Eurosystem’s monetary policy instruments,
together with any other counterparties used by the Eurosystem for the
investment of its euro-denominated portfolios.
- Holdings of securities issued by central
governments, certain agencies established in the euro area and certain
international or supranational institutions located in the euro area
purchased under the expanded asset purchase programme will be eligible for
securities lending.
- Transactions in securities purchased under the
programme will be published in a weekly report which will list holdings at
amortised cost by asset type. In addition, for securities purchased under
the expanded asset purchase programme that are not covered by the ABSPP or
CBPP3, a report of the amounts held, valued at amortised cost, and the
weighted average remaining maturity by issuer residence will be released
on a monthly basis.
*Η
σχετική αναφορά στο άρθρο 4 περιλαμβάνεται στη δήλωση της Εκπροσώπου Τύπου της
Νέας Δημοκρατίας κας Μαρίας Σπυράκη, στην απάντηση που έδωσε στο ΣΥΡΙΖΑ για τη
σημερινή απόφαση της ΕΚΤ.
Η Ελλάδα οδηγείται στις εκλογές μέσα σε κλίμα πόλωσης.
