Memento: How QE will work

ECB's QE country breakdown
  • Purchases under the program will start on March 9.
  • Purchases will total €60 billion per month.
  • The ECB will purchase debt with negative yields, so long as those yields are not below the ECB deposit rate at time of purchase. The ECB deposit rate is currently -0.2%.
  • If a Euro-Area central bank cannot purchase sufficient marketable debt instruments to fulfill its allocation, the ECB will allow substitute purchases. This substitute purchases rule should enable the ECB to fill its €60 billion target each month.
  • The ECB will not buy more than 25% share of any one issue in order to avoid it having a blocking majority in case of any debt restructuring.
  • The ECB will only buy in the secondary market.
  • The ECB will purchase debt with remaining maturity between 2 and 30 years only.

The ECB provided a list of the international and supernational institutions and agencies it would purchase the debt of:

    • Council of Europe Development Bank
    • European Atomic Energy Community
    • European Financial Stability Facility
    • European Stability Mechanism
    • European Investment Bank
    • European Union
    • Nordic Investment Bank
    • Caisse d’amortissement de la dette sociale (CADES)
    • Union Nationale Interprofessionnelle pour l’Emploi dans l’Industrie et le Commerce (UNEDIC)
    • Instituto de Credito Oficial
    • Kreditanstalt fuer Wiederaufbau
    • Landeskreditbank Baden-Württemberg Foerderbank
    • Landwirtschaftliche Rentenbank
    • NRW.Bank

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