Home » QT or even the end of BTP assistance, Lagarde: asset portfolio reduced by 15 billion per month in the March-June period

QT or even the end of BTP assistance, Lagarde: asset portfolio reduced by 15 billion per month in the March-June period

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The ECB portfolio consisting of the assets that the ECB has purchased in recent years, sovereign debts including BTPs and corporate bonds, will drop by 15 billion euros per month, through the QT-Quantitative Tightening plan. This was confirmed by Christine Lagarde, number one of the ECB, during the conference following the announcement of the rate hike.

The QT, continued Lagarde, will begin in March and continue until the end of June.

The ECB statement reads as follows:

“As communicated in December, the pace of this reduction will average €15 billion per month from the beginning of March to the end of June 2023 and will then be determined over time. Partial reinvestments will be conducted broadly in line with current practice. In particular, the remaining reinvestments will be distributed pro rata to the repayment share in the individual components of the APP and, under the public sector purchase program (PSPP), pro rata to the country and country reimbursement share. for the various national and supranational broadcasters”.

“As part of the Eurosystem’s purchases of corporate bonds – it continues – the remaining reinvestments will be oriented more towards issuers with better climate performance. Without prejudice to the ECB’s objective of price stability, this approach will support the gradual decarbonisation of the Eurosystem’s corporate bond stocks, in line with the objectives of the Paris Agreement”.

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