The details of the European Central Bank
Based on the available data, the total purchases of Cypriot bonds by the Eurosystem correspond to approximately 30% of the issued debt of the Republic of Cyprus.
The value of the Cypriot bonds that the Eurosystem holds on its balance sheet through the asset purchase programs, PSPP and PEPP, exceeded €7 billion.
Based on the available data , the total purchases of Cypriot bonds by the Eurosystem correspond to approximately 30% of the issued debt of the Republic of Cyprus.
According to data from the European Central Bank (ECB), processed by the CYPE, through the public sector asset purchase program (PSPP), the total value of Cypriot bonds that have been acquired, mainly by the Central Bank of Cyprus (CBC) and the ECB, amounted to €4.52 billion at the end of January, while in the same month there have been net purchases of Cypriot bonds amounting to €16 million. The weighted average duration of these bonds is 8.93 years.
Net new purchases through the PSPP ended in June 2022, with the Eurosystem fully reinvesting the capital from the redemption of bonds maturing by February 2023.
Bonds €2 .49 billion through PEPP
Moreover, the total bonds on the balance sheet of the CBC and the ECB, acquired through the Pandemic Emergency Purchase Program (PEPP), amounted to €2.49 billion at the end of January, with net purchases in the December-January period amounting to € 6 million. The weighted average maturity of the bonds is 8.1 years.
Net purchases of bonds through the PEPP have been terminated since last March, while the amounts of bonds that expire for a period until the end of 2024 will be fully reinvested.
Meanwhile, at its latest meeting in early February, the ECB's Governing Council reaffirmed its previous decisions on the next steps in relation to the wider APP purchase programme, namely to taper it at a rate of €15bn per month on average from the authorities March until the end of June 2023 and noted that thereafter the pace of this reduction will be determined over time.
“The partial reinvestments will generally be conducted in accordance with the current practice,” the ECB Governing Council said, adding specifically that the remaining reinvestments will be distributed in proportion to the share of securities redemption among the APP component programs and, under the PSPP, in proportion to each country's share of securities redemption and between issuing states and supranational issuers.
Regarding the PEPP programme, the Governing Council reaffirmed that it intends to reinvest the principal amounts from the redemption of securities acquired under the program at their maturity at least until the end of 2024.