{"id":2047,"date":"2020-03-23T20:17:31","date_gmt":"2020-03-23T19:17:31","guid":{"rendered":"https:\/\/reclaimfinance.org\/site\/?p=2047"},"modified":"2023-03-03T16:48:58","modified_gmt":"2023-03-03T15:48:58","slug":"usd-870-billion-of-qe","status":"publish","type":"post","link":"https:\/\/reclaimfinance.org\/site\/en\/2020\/03\/23\/usd-870-billion-of-qe\/","title":{"rendered":"USD 870 billion of Quantitative Easing: how much will go to polluting companies ?"},"content":{"rendered":"

On March 12 and 18, the ECB announced a further \u20ac870 billion in asset purchases (Asset Purchase Program) through an increase of \u20ac120 billion in its quantitative easing programs and the creation of a \u20ac750 billion Pandemic Emergency Purchase Program (PEPP).<\/span><\/p>\n

A total of \u20ac1.01 trillion in securities repurchases will be carried out over the year, representing 38% of the securities held by the Bank in February 2020. These funds make it possible to buy:<\/span><\/p>\n

    \n
  1. Bonds issued by governments, local authorities or international organisations via the Public Sector Purchase Program (PSPP);<\/span><\/li>\n
  2. Corporate bonds, with a maturity between six months and 31 years, via the Corporate Sector Purchase Program (CSPP);<\/span><\/li>\n
  3. Bonds issued by banks and covered by assets via the Covered Bond Purchase Program 3 (CBPP3); and<\/span><\/li>\n
  4. Asset-backed bonds via the Asset-Backed Securities Purchase Program (ABSPP).<\/span><\/li>\n<\/ol>\n

    The current distribution of asset buybacks is summarised in the following table:<\/span><\/p>\n<\/div>

    <\/span><\/div>

    Calculation : Reclaim Finance ; Data : BCE
    \n<\/span><\/i>Note: data for February 2020 for securities held and December 2019 for eligible securities.<\/span><\/em><\/p>\n<\/div>

    \u00a0<\/span><\/p>\n

    The ECB uses a purchase allocation key which limits purchases of sovereign debt to one third of a government’s debt. It also limits purchases of other securities to a share in proportion to each country’s share in the ECB’s capital. This key is maintained but could be revalued at a later date (1).<\/span><\/p>\n

    The proposed calculations are therefore based on two assumptions:<\/span><\/p>\n