The Pandemic Emergency Purchase Programme (PEPP) is a short-term asset purchase program of public and private sector securities. In response to the current crisis of COVID-19, the European Central Bank (ECB) has flung a €750 billion Pandemic Emergency Purchase Programme. Almost all groups of assets are eligible under the new purchase programme and also eligible under exiting Asset Purchase Programme (APP).
On 4th June the European Central Bank proclaimed that it would raise its Pandemic Emergency Purchase Programme (PEPP) further by 600 billion euros, captivating the total to 1.35 trillion euros. The period of the programme was also extended from June 2020 to June 2021 or until the bank believes that the coronavirus pandemic is over.
The Pandemic Emergency Purchase Programme is the expansion of the European Central Bank’s Asset Purchase Programme (APP) that was started in 2014 to backing the monetary policy. It is a big incentive package to alleviate the economic tremor caused by coronavirus pandemic crisis.
Pandemic Emergency Purchase Programme (PEPP) primary objective is to support the financial conditions and liquidity of Eurozone economy sectors. All purchases of assets made under this programme will continue until the European Central Bank believes that the coronavirus crisis is over.