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

Via ECB (Den Europæiske Centralbank)

PRESS RELEASE

5 June 2020

  • ECB and Banca Naţională a României set up new repo line
  • Repo line to remain in place until end-2020, or as long as needed
  • Size of repo line set at €4.5 billion

The European Central Bank (ECB) and the Banca Naţională a României (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 maximum maturity of each drawing will be three months. The repo line will remain in place until 31 December 2020, unless it is extended.

For media queries, please contact Eva Taylor, tel.: +49 69 1344 7162.

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