ECB Finalizes Enhanced Repo Facility for Central Banks

The European Central Bank (ECB) has finalized the operational features and onboarding framework for its enhanced Eurosystem Repo Facility for Central Banks (EUREP). This comes after an initial announcement in February. The facility will be operated by five national central banks: Deutsche Bundesbank, Banco de España, Banque de France, Banca d'Italia, and De Nederlandsche Bank.

Under the updated structure, onboarded central banks can access euro liquidity via loans secured against high-quality euro-denominated collateral. The facility will be priced at the ECB's main refinancing operations (MRO) rate, plus a spread set by the Governing Council to preserve its backstop character.

The maximum line size for each central bank is €50 billion, supported by risk mitigation measures put in place to protect the Eurosystem. The facility provides standing access and is open to all central banks and monetary authorities outside the euro area, unless excluded on grounds of money laundering, terrorist financing, or sanctions.