- Size of repo line remains unchanged at €4.5 billion
- ECB has extended several liquidity lines with non-euro area central banks until 15 January 2023
- Extensions address increased uncertainty and regional spillover risks owing to war in Ukraine
The European Central Bank (ECB) and Banca Naţională a României (BNR) have agreed to renew the repo line arrangement to provide euro liquidity to the BNR. The arrangement will now expire on 15 January 2023. A previous repo line that had been established in 2020 expired on 31 March 2022.
Under the repo line arrangement, the ECB provides up to €4.5 billion of euro liquidity to the BNR in exchange for adequate euro-denominated collateral.
The continuation of the repo line with the BNR follows the ECB’s decision in March 2022 to extend the Eurosystem repo facility for central banks (EUREP) and several bilateral liquidity lines with non-euro area central banks until 15 January 2023. In the context of heightened geopolitical tensions triggered by Russia’s invasion of Ukraine, the liquidity lines aim to prevent spillback effects on euro area financial markets and economies that might adversely affect the smooth transmission of the ECB’s monetary policy.
ecb.europa.eu
