Memento: How QE will work

• Purchases under the program will start on March 9.
• Purchases will total €60 billion per month.
• The ECB will purchase debt with negative yields, so long as those yields are not below the ECB deposit rate at time of purchase. The ECB deposit rate is currently -0.2%.
• If a Euro-Area central bank cannot purchase sufficient marketable debt instruments to fulfill its allocation, the ECB will allow substitute purchases. This substitute purchases rule should enable the ECB to fill its €60 billion target each month.
• The ECB will not buy more than 25% share of any one issue in order to avoid it having a blocking majority in case of any debt restructuring.
• The ECB will only buy in the secondary market.
• The ECB will purchase debt with remaining maturity between 2 and 30 years only.

The ECB provided a list of the international and supernational institutions and agencies it would purchase the debt of:

• • Council of Europe Development Bank
  • European Atomic Energy Community
  • European Financial Stability Facility
  • European Stability Mechanism
  • European Investment Bank
  • European Union
  • Nordic Investment Bank
  • Caisse d’amortissement de la dette sociale (CADES)
  • Union Nationale Interprofessionnelle pour l’Emploi dans l’Industrie et le Commerce (UNEDIC)
  • Instituto de Credito Oficial
  • Kreditanstalt fuer Wiederaufbau
  • Landeskreditbank Baden-Württemberg Foerderbank
  • Landwirtschaftliche Rentenbank
  • NRW.Bank

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