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The Bank of Portugal bought €20.3 billion in Portuguese debt throughout 2021which is expressed in 2020, which is expressed in other values, which was disclosed in 2020, exceeds what was disclosed in new public debt by the Portuguese State throughout the year.
To the 20.3 billion euros purchased by the Bank of Portugal, there are more securities purchased by the ECB, in a centralized manner, bringing the total net value to 22.6 billion eurosaccording to the Monetary Policy Implementation Report released this Wednesday by Banco de Portugal.
These debt purchases, which Banco de Portugal (and the ECB) do not make on the secondary market (to investors, not to the State), were made in a year in which the Treasury and Public Debt Management Agency (IGCP) placed 14, 6 billion euros in long-term debt – and the issuance of short-term debt, which the Bank of Portugal also purchased, was negative in net terms, by almost 5 billion.
In gross terms, 24.7 billion euros in debt securities were acquired during the year. According to a report released by the Bank of Portugal, these purchases represent 3,000 transactions throughout the year – securities acquired from 26 counterparties, including 5 Portuguese.
Purchases by Banco de Portugal and the ECB were made under two programs that end in 2022. The pandemic intervention program (known by the acronym PEPP) was already completed in March and as purchases under the regular purchase program (PSPP) ) are decreasing every month and Christine Lagarde, President of the ECB, confirmed that they will disappear in the third quarter.
Despite the end of the net new purchases programmes, the Eurosystem will remain active in the market by reinvesting all the capital it receives (in the form of interest or repayments) as time passes. In PEPP this reinvestment will take place at least until 204, and PSPP there is no indication of when it will end – ECB, however, will not reveal the amounts that may be at stake, for example, in 2022.
“It scares a little” the end of debt purchases by the ECB, says the president of the IGCP on the day that 10-year interest rates exceed 1%
end of 2, as the Bank has already disclosed, there was no balance sheet of the bank 86.2 million euros of monetary policies, which had acquired 96.5% of the securities in 96.5% of the corresponding securities. supranational.
The economic policy to the economy of the economy, with the objective of guaranteeing a credit strategy in Portugal, with a guarantee of price stability in the Portugal communiqué.
In addition to the data released on Banco de Portugal’s debt operations, also on the new series of longer-term refinancing operations associated with the pandemic (PELTRO), such as the conditions of the third series of targeted longer-term refinancing refinancing operations ( TLTRO III).
“At the end of the year, the amount realized by the Portuguese counterparties in political economic liquidity-providing operations totals 41.8 billion eurosalmost entirely related to the TLTRO, which corresponds to a growth of 30% in relation to the previous year (20% in the Eurosystem)”, says the Bank of Portugal.
With these interventions, “the Eurosystem’s monetary policy continued [em 2021] to promote financing conditions, supporting the economy and the convergence of inflation to the economic economy target.