ECB and National Bank of Romania set up repo line to provide euro liquidity

PRESS RELEASE

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ECBECB
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https://www.ecb.europa.eu//press/pr/date/2020/html/ecb.pr200605~530c053484.en.htmlhttps://www.ecb.europa.eu//press/pr/date/2020/html/ecb.pr200605~530c053484.en.html
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Saturday, June 6, 2020
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European Union, Eurozone, Economy, Banking, Economy of the European Union, European Central Bank, European System of Central Banks, Repurchase agreement, Euro, Central bank, Open market operation, Asset and liability management
Summary
Key Points: 
  • PRESS RELEASE

    ECB and National Bank of Romania set up repo line to provide euro liquidity

    5 June 2020

    The European Central Bank (ECB) and the Banca Naional a Romniei (National Bank of Romania - BNR) have agreed to set up a repo line arrangement to provide euro liquidity to the BNR to address possible euro liquidity needs in the presence of market dysfunctions due to the COVID-19 shock.

  • Under a repo line, the ECB provides euro liquidity to a foreign central bank in exchange for high-quality euro-denominated collateral.
  • Under the new repo line, the BNR will be able to borrow up to 4.5 billion from the ECB.
  • The repo line will remain in place until 31 December 2020, unless it is extended.
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