Pandemic Emergency Purchase Programme (PEPP)

The PEPP is a temporary purchase programme of private and public sector securities – as purchased under the existing asset purchase programme (APP) – with an original overall envelope of €750 billion. On 4 June 2020, the ECB Governing Council decided to increase the envelope by €600 billion to a total of €1,350 billion. PEPP purchases are made in addition to, and separate from, purchases under the APP, which was increased on 12 March 2020 by €120 billion until the end of 2020. PEPP purchases started on 26 March 2020 and are made to the extent to which these are necessary and proportionate. The temporary measure is envisaged to last until the ECB Governing Council judges that the COVID-19 crisis phase is over, but at least until the end of June 2021. As with the APP, PEPP purchases are made jointly by the national central banks and the ECB. The distribution of hypothetical losses is also the same as in the APP.