Irish economy

Ireland to benefit from change in ECB capital key

DAVY VIEW

Ireland will benefit from a significant revision to its capital key, from 1.6% to 1.8%, in January 2019 – implying that the stock of Public Sector Purchase Programme (PSPP) purchases should rise gradually from €30bn currently to €36bn despite the ‘end’ of Quantitative Easing (QE). Given that €163bn of PSPP purchases will mature over the next 12 months, re-investment into Irish government debt should equal €3.4bn in 2019 – close to 20% of the funding requirement next year.

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Nov 22 2018, 07:25 GMT

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