Bank of Latvia acquires securities worth EUR 7.187 billion

As part of European Central Bank’s Public Sector Securities Purchase Program, the Bank of Latvia procured at the end of July securities of international organizations in Latvia and Eurozone worth EUR 7.187 billion, according to information published by the Bank of Latvia.

In addition, the Bank of Latvia procured securities worth EUR 40.927 million in July 2018.

In January 2018, the Bank of Latvia procured securities worth EUR 80.475 million. In February the bank procured securities worth EUR 82.456 million. Securities worth EUR 6.45 million were procured in May, because this month also marked the maturity date for securities previously procured as part of PSPP. In April, the bank procured securities worth EUR 77.432 million, in May securities worth EUR 84.792 million were procured, and in June – worth EUR 94.784 million.

The programme commenced in March 2015, realizing the goal of European Central Bank and other Eurozone central banks’ goal to maintain average inflation close to 2%. Expanded Asset Purchase Programme initially consisted of three parts – PSPP, Third Covered Bond Purchase Programme and Asset-backed Securities Purchase Programme. However, since 8 June 2016, the programme has also included Corporate Sector Purchase Programme.

The net asset procurement volume in the programme will be EUR 30 billion a month before the end of September 2018. If data still affirms ECB Council’s medium-term inflation perspective, the net monthly asset procurement volume will be reduced to EUR 15 billion from September to the end of December 2018. After that, net procurements will be ceased.

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