Newsroom / CNA
The value of Cypriot bonds held by the Eurosystem has dipped below €7 billion as the European Central Bank takes measures to combat inflation. Data reveals that Cypriot bonds within the Public Sector Asset Purchase Programs (PSPP) and the Pandemic Emergency Purchase Program (PEPP) have decreased to €6.7 billion.
The PSPP portfolio recorded a value of €4.29 billion at the end of August, with no new purchases and €285 million in sales in July. The PEPP portfolio reported a value of €2.39 billion by the end of July, with €156 million in sales between June and July. Net bond purchases under PEPP concluded in March 2022, and reinvestment will occur for bonds maturing up to the end of 2024.
The ECB aims to manage the PEPP portfolio to avoid interference with its monetary policy stance as part of its efforts to control inflation. This comes as the ECB adopts a restrictive monetary policy to reduce market liquidity and address inflation concerns.
