ECB and Bulgarian National Bank 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.pr200422~962a743486.en.htmlhttps://www.ecb.europa.eu//press/pr/date/2020/html/ecb.pr200422~962a743486.en.html
Retrieved on: 
Thursday, April 23, 2020
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Tags: 
European Union, Eurozone, Economy of Europe, Europe, European Central Bank, Euro, Currency swap, Central bank, Swap, Enlargement of the eurozone, Policy reactions to the Eurozone crisis
Summary
Key Points: 
  • PRESS RELEASE

    ECB and Bulgarian National Bank set up swap line to provide euro liquidity

    22 April 2020

    The European Central Bank (ECB) and the (Bulgarian National Bank) have agreed to set up a precautionary currency agreement (swap line) to provide euro liquidity.

  • Under the new swap line, the Bulgarian National Bank will be able to borrow up to 2 billion from the ECB in exchange for Bulgarian levs.
  • The swap line will remain in place until 31 December 2020, unless it is extended.
  • Bulgaria is preparing for participation in the exchange rate mechanism (ERM II), which is a prerequisite for an EU Member State to join the euro area.
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