Asset purchase programmes

The expanded asset purchase programme (APP) adds the purchase programme for public sector securities to the existing private sector asset purchase programmes to address the risks of a too prolonged period of low inflation.

The various purchase programmes

  • third covered bond purchase programme (CBPP3)
  • asset-backed securities purchase programme (ABSPP)
  • public sector purchase programme (PSPP)
  • corporate sector purchase programma (CSPP)

Monthly purchases in public and private sector securities will amount to €80 billion until March 2017.

From April 2017, the net asset purchases are intended to continue at a monthly pace of €60 billion until the end of December 2017, or beyond, if necessary, and in any case until the Governing Council sees a sustained adjustment in the path of inflation consistent with its inflation aim.

For more information on the Eurosystem’s asset purchase programmes, you can visit the ECB website: Asset purchase programmes.

Securities lending

As announced during the Governing Council meeting on 5 March 2015 and on June 1st 2016, the holdings purchased under the public sector purchase programme (PSPP) and corporate sector purchase programma (CSPP) will be made available for securities lending in a decentralised manner in order to support bond and repo market liquidity. For more information regarding the general Eurosystem lending framework, please go to: ‘Securities lending of holdings under the expanded asset purchase programme (APP)’.

Securities lending under PSPP

The National Bank of Belgium will lend the securities purchased under PSPP (see attached list of ISINs available) via bilateral repos or bilateral repos combined with bilateral reverse repos with counterparties that have a contract with NBB for repos in euro. More information regarding specific details can be found under: Lending of holdings purchased under PSPP – framework within National Bank of Belgium.
Securities purchased under PSPP available for securities lending

 

Securities lending under CSPP

Also under CSPP, the National Bank of Belgium will provide the possibility to lend securities via bilateral repos combined with bilateral reverse repos with counterparties that have a contract with NBB for repos. Next to bilateral lending, NBB decided to participate in the Automatic Securities Lending and Borrowing Programme of Euroclear Bank SA/NV. More information regarding specific details can be found under Lending of holdings purchased under the corporate sector purchase programme (CSPP)
Securities purchased under CSPP available for securities lending

 

Contact

Market participants can contact NBB’s Front Office desk via e-mail at forex@nbb.be or by phone on +32 2 221 4971.