ECB Grants National Bank EUR 50 Billion Repo Line Access

The European Central Bank (ECB) has granted permanent access to its advanced repo line (EUREP) to the National Bank, allowing it to draw up to EUR 50 billion in foreign currency liquidity. This is a significant development for the bank, which currently has access to a smaller repo line with a maximum capacity of EUR 400 million.

The new EUREP line will provide the National Bank with fast availability of euro liquidity, enabling it to deal with potential shocks and increased demand for foreign currency. Despite having high levels of foreign reserves, which serve as a protective mechanism against macroeconomic and financial instability, access to the advanced repo line is seen as an important support for strengthening financial system resilience.

The EUREP line is a permanent instrument of the Eurosystem, established to support monetary policy implementation by providing euro liquidity to central banks outside the euro area. By granting access to this line, the ECB demonstrates its commitment to providing euro liquidity in periods of market stress and supporting the smooth functioning of financial markets.