ECB Begins Cyprus Bonds Purchases Following Investment-Grade Upgrade

The European Central Bank (ECB) recommenced purchases of Cypriot government bonds following the upgrade of Cyprus credit rating to investment-grade by Standard and Poor’s.

Purchases of Cyprus bonds by the ECB in the context of the ECB’s Public Sector Purchase Program ceased in early 2016, after Cyprus concluded its financial assistance program but its sovereign credit rating remained below investment-grade status.

Under the ECB PSPP’s rules, eligible countries should have investment-grade sovereign ratings by at least of rating agency or implement an economic adjustment program with a positive review.

With information from C.N.A.