New Eurosystem repo facility to provide euro liquidity to non-euro area central banks

PRESS RELEASE

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ECBECB
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https://www.ecb.europa.eu//press/pr/date/2020/html/ecb.pr200625~60373986e5.en.htmlhttps://www.ecb.europa.eu//press/pr/date/2020/html/ecb.pr200625~60373986e5.en.html
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Friday, June 26, 2020
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Eurozone, European Union, European System of Central Banks, Economy of Europe, Europe, Economy of the European Union, European Central Bank, Euro, Repurchase agreement, TARGET2
Summary
Key Points: 
  • PRESS RELEASE

    New Eurosystem repo facility to provide euro liquidity to non-euro area central banks

    25 June 2020

    In response to the coronavirus (COVID-19) crisis, the Governing Council of the European Central Bank (ECB) decided to set up a new backstop facility, called the Eurosystem repo facility for central banks (EUREP), to provide precautionary euro repo lines to central banks outside the euro area.

  • EUREP addresses possible euro liquidity needs in case of market dysfunction resulting from the COVID-19 shock that might adversely impact the smooth transmission of ECB monetary policy.
  • Under EUREP, the Eurosystem will provide euro liquidity to a broad set of central banks outside the euro area against adequate collateral, consisting of euro-denominated marketable debt securities issued by euro area central governments and supranational institutions.
  • EUREP complements the ECBs bilateral swap and repo lines and reflects the importance of the euro in global financial markets.
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