Principal payments from maturing marketable debt securities of central, regional or local governments and recognised agencies shall be reinvested by purchasing eligible marketable debt securities issued by central, regional or local governments and recognised agencies. The reinvestment of principal payments shall be distributed over the year to allow for a regular and balanced market presence. Principal payments from maturing marketable debt securities issued by international organisations and multilateral development banks shall be reinvested by purchasing eligible marketable debt securities issued by international organisations and multilateral development banks.

The allocation of cumulative net purchases of marketable debt securities issued by eligible central, regional or local governments and recognised agencies across eligible jurisdictions shall continue to be guided, on a stock basis, by the respective NCBs’ subscription to the ECB’s capital as referred to in Article 29 of the Statute of the ESCB.

Eurosystem central banks shall apply a specialisation scheme for the allocation of marketable debt securities to be purchased under the PSPP. The Governing Council shall allow for ad hoc deviations from the specialisation scheme should objective considerations obstruct the achievement of the said scheme or otherwise render deviations advisable in the interests of attaining the overall monetary policy objectives of the PSPP. In particular, each NCB shall purchase eligible securities of issuers of its own jurisdiction. Securities issued by eligible international organisations and multilateral development banks may be purchased by all NCBs. The ECB shall purchase securities issued by central governments and recognised agencies of all jurisdictions.

Purchases of debt securities issued by eligible international organisations, multilateral development banks and regional and local governments shall be made by NCBs only.