Michael McGrath (Cork South Central, Fianna Fail)
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137. To ask the Minister for Finance the value of assets held by the European Central Bank and associated national central banks as part of the public sector purchase programme. PSPP; the value of Irish Government bonds held by the ECB as part of the PSPP; the plans by the ECB to unwind PSPP; the method by which it will be determined which sovereign bonds will be sold in each month of the unwinding of PSPP; and if he will make a statement on the matter. [8061/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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The value of Eurosystem holdings under the Public Sector Purchase Programme stood at €1,919,149 million* as at 9 February 2018 *at amortised cost. Source ECB website: .

The value of Irish Government bonds held by the Eurosystem, not the ECB, as part of the PSPP is €25,687 million* as at 31 January 2018. *Book value. Source ECB website– .

I wish to clarify for the Deputy that the ECB has not announced plans to “unwind” the PSPP.  In this context, please refer to paragraphs 2 and 3 of the press release published following the Governing Council meeting of 26 October, 2017, which states that:

"(2) As regards non-standard monetary policy measures, purchases under the asset purchase programme, APP, will continue at the current monthly pace of €60 billion until the end of December 2017. From January 2018 the net asset purchases are intended to continue at a monthly pace of €30 billion until the end of September 2018, or beyond, if necessary, and in any case until the Governing Council sees a sustained adjustment in the path of inflation consistent with its inflation aim. If the outlook becomes less favourable, or if financial conditions become inconsistent with further progress towards a sustained adjustment in the path of inflation, the Governing Council stands ready to increase the APP in terms of size and/or duration.

(3) The Eurosystem will reinvest the principal payments from maturing securities purchased under the APP for an extended period of time after the end of its net asset purchases, and in any case for as long as necessary. This will contribute both to favourable liquidity conditions and to an appropriate monetary policy stance."

The full press release is available here: .