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Eurosystem's asset purchase programmes

The Governing Council of the ECB, as part of its mandate to maintain price stability, has launched a number of asset purchase programmes in recent years.

In an environment where key ECB interest rates are at their lower bound, asset purchases provide monetary stimulus to the economy.

These purchases further ease monetary and financing conditions, making recourse to cheaper financing for firms and households, thus supporting investment and consumption and ultimately contributing to a return of inflation to levels below but close to 2%.

Four asset purchase programmes are currently under way, broadly included in the expanded asset purchase programme – APP, through which private and public debt securities are purchased in order to meet the risks associated with a protracted period of low inflation levels:

  • The asset-backed securities purchase programme (ABSPP), announced on 2 October 2014; 
  • The covered bond purchase programme (CBPP3), announced on 2 October 2014; 
  • The public sector purchase programme (PSPP), announced on 22 January 2015;
  • The corporate sector purchase programme (CSPP), announced on 10 March 2016.

Acquisitions are intended to be carried out until the Governing Council sees a sustained adjustment in the path of inflation in the euro area that is consistent with the objective defined.

Lending of holdings purchased by the Eurosystem under the Public Sector Purchase Programme

As of 2 Abril 2015, the securities purchased by the Eurosystem under the PSPP are made available for securities lending in a decentralised manner by a number of central banks.

The aim of securities lending is to support bond and repo market liquidity.

The primary targets are market participants with market making obligations.

Further details on the securities lending arrangements of both the ECB and the Eurosystem national central banks can be found on the ECB's website.

Banco de Portugal securities lending arrangements 

Banco de Portugal is making the holdings of securities purchased under the public sector purchase programme (PSPP) available for securities lending as from 7 April 2015.

The implementation of this activity is currently delegated to Euroclear Bank SA/NV through GC Access, a non-cash collateral programme, and also to Clearstream Banking S.A. (CBL) since 13 December 2017 through ASLplus.

Holdings purchased by Banco de Portugal under the Securities Markets Programme (SMP) are also available for lending under the same conditions. 

Banco de Portugal also participates in Euroclear Bank SA/NV’s and Clearstream Banking S.A. (CBL) Securities Lending and Borrowing Programmes for the purpose of mitigating settlement failures. The terms and conditions of the programmes are the standard conditions defined by Euroclear Bank SA/NV and Clearstream Banking S.A. (CBL).

Market participants may contact Banco de Portugal for further information at: