Public Sector Purchase Programme (PSPP)
On 22 January 2015, the European Central Bank (ECB) announced the Eurosystem's expanded Asset Purchase Programme (APP), which now comprises the Public Sector Purchase Programme (PSPP), the Covered Bonds Purchase Programme (CBPP3), the Asset Backed Securities Purchase Programme (ABSPP) and the Corporate Sector Purchase Programme (CSPP). The PSPP commenced on 9 March 2015 and is by far the biggest of the four programmes. Under the PSPP, Eurosystem members purchase eligible bonds issued by euro area central or regional governments, certain agencies and certain international or supranational institutions located in the euro area.
Reverse auctions of Public Sector Purchase Programme
The Central Bank of Malta will hold reverse auctions on a trial basis for some of its outright purchases under the PSPP as from September 2016. The Bank will use reverse auctions to purchase selected Malta Government debt securities eligible for the PSPP.
Auctions by the Bank will normally be held on Wednesdays, unless announced otherwise on the Bank's website. The list of targeted bonds will be published on this page two days prior to the auction. Eligible counterparties can participate in these PSPP reverse auctions.
Information published on this page also includes terms and conditions, timeline and FAQs.
The Central Bank of Malta's announcement of Reverse Auctions including ISINs list can be found here.
The Central Bank of Malta will publish auction results after each auction.
Eligible securities available for lending
On 2 April 2015, the Governing Council of the ECB decided that bonds acquired by Eurosystem members under the PSPP should be made available for lending in a decentralised manner, unless jurisdiction specific conditions justify otherwise. The aim of securities lending is to support bond and repo market liquidity without disrupting normal repo market activity. In this context, the ISINs of such bonds will be published on the websites of the respective national central banks on a weekly basis. Moreover, those Eurosystem members that make their PSPP-eligible Securities Markets Programme (SMP) bond holdings available for lending will publish the list of the ISINs of the SMP securities concerned on their respective websites.
As at this stage there is no market demand for borrowing of Malta Government Stocks (MGS), the Central Bank of Malta does not make its MGS holdings available for lending. Nevertheless, the Bank holds a number of PSPP-eligible SMP securities in its monetary policy portfolio which are available for repo activity through its bilateral agreements with its counterparties. Accordingly, the Bank started to post a list of the ISINs of the related bonds on its website as from 8 April 2015.