ECB and Hrvatska narodna banka set up swap line to provide euro liquidity

PRESS RELEASE

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ECEC
URL: 
https://www.ecb.europa.eu//press/pr/date/2020/html/ecb.pr200415_1~92fe0267b1.en.htmlhttps://www.ecb.europa.eu//press/pr/date/2020/html/ecb.pr200415_1~92fe0267b1.en.html
Retrieved on: 
Thursday, April 16, 2020
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Tags: 
Eurozone, European Union, European System of Central Banks, Economy of Europe, Europe, Economy of the European Union, European Central Bank, Currency swap, Euro, Swap, Croatian National Bank
Summary
Key Points: 
  • PRESS RELEASE

    ECB and Hrvatska narodna banka set up swap line to provide euro liquidity

    15 April 2020

    The European Central Bank (ECB) and Hrvatska narodna banka (Croatian National Bank) have agreed to set up a precautionary currency agreement (swap line) to provide euro liquidity to Croatian financial institutions in order to address possible market dysfunction.

  • Under the new swap line, Hrvatska narodna banka will be able borrow up to 2 billion from the ECB in exchange for Croatian kuna.
  • The swap line will remain in place until 31 December 2020, unless it is extended.
  • Croatia is preparing for participation in the exchange rate mechanism (ERM II), which is a prerequisite for a Member State to join the euro area.
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