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International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 01:08

Bank of Latvia has bought EUR 7.146 bln worth of securities under ECB program

BC, Riga, 13.07.2018.Print version
The Bank of Latvia has so far purchased EUR 7.146 billion worth of Latvian and supranational securities under the European Central Bank's (ECB) Public Sector Purchase Program (PSPP), according to the information published by the bank.

In June 2018, the Bank of Latvia purchased securities for EUR 94.784 mln.

In January, the Latvian central bank bought securities for EUR 80.475 mln, in February for EUR 82.456 mln, and in March for EUR 6.45 mln. Some of the Latvian securities that had been bought up under the PSPP matured in March. In April, the Bank of Latvia purchased EUR 77.432 mln worth of securities and EUR 84.792 mln worth of securities were bought in May.


The securities purchase program was launched in March 2015 pursuing the Eurosystem's (comprising the ECB and national central banks of the euro area) objective of keeping medium-term inflation rates below, but close to, 2 %. The expanded assets purchase program now comprises four programs: the PSPP, the CBPP3 (the covered bond purchase program), the ABSPP (the asset-backed securities purchase program) and the latest addition - the CSPP (the corporate sector purchase program).


Under the ECB program, the Bank of Latvia, just like the central banks of all other eurozone countries, is expected to buy up local government bonds and supranational securities.


The European Central Bank is planning to cut its asset purchase program starting from the current EUR 30 bln a month to EUR 15 bln a month from September to December 2018. After that the quantitative easing program will be discontinued.






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