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As a result, and in conjunction with the other non-standard measures in place, the corporate sector purchase programme (CSPP) will provide further monetary policy accommodation and contribute to a return of inflation rates to levels below, but close to, 2% in the medium term.
Eligibility under the Eurosystem’s collateral framework – the rules that lay out which assets are acceptable as collateral for monetary policy credit operations – will be a necessary condition for determining the eligibility of assets to be purchased under the CSPP, subject to further criteria. Securities issued by credit institutions and by entities with a parent company which belongs to a banking group will not be eligible.
CSPP purchases will begin towards the end of the second quarter of 2016. Further technical details on the CSPP will be announced in due course.
The Governing Council also decided to adjust the parameters of the public sector purchase programme (PSPP). The issuer and issue share limits for securities issued by eligible international organisations and multilateral development banks will be increased to 50%. In addition, as of April 2016 the share of such securities purchased under the PSPP will be reduced from 12% to 10% on a monthly basis. To maintain the 20% risk-sharing regime, the European Central Bank’s (ECB) share of monthly PSPP purchases will be increased from 8% to 10%.