The Public Sector Purchase Programme (PSPP)

The PSPP is the largest of the four purchase programmes. The securities purchased under PSPP include:

1. European government bonds – nominal and inflation linked
2. Bonds issued by recognised agencies, regional and local governments, international organisations and multilateral development banks located in the euro area

Government and Agency bonds will make up 90% of the purchases. The remaining 10% of purchases will be of bonds issued by international organisations and multilateral development banks.

Specifically, the Central Bank of Ireland purchases Irish government bonds, and a limited amount of bonds issued by international organisations and multilateral development banks on behalf of the Eurosystem. All Irish government bond purchases are held on the Central Bank’s balance sheet at own risk (all profits/losses from these purchases will be retained by the Central Bank). All other purchases under the PSPP are held on a full income and loss sharing regime, as is the case with most decentralised monetary operations.

The Eurosystem began purchases under PSPP on 9 March 2015. 

As announced following the Governing Council meeting on 5th March 2015, the securities purchased under the PSPP will be made available for securities lending.

FAQs related to the PSPP can be found on the ECB’s website.