ECB Launches EUREP Facility for Non-Euro Area Central Banks
The European Central Bank (ECB) has launched a new facility for non-euro area central banks to access euro liquidity, designated as EUREP. The initiative aims to facilitate the unimpeded transmission of monetary policy and bolster the euro's global standing.
EUREP will be administered by five national central banks - Deutsche Bundesbank, Banco de España, Banque de France, Banca d'Italia, and De Nederlandsche Bank - with coordination provided by the ECB. Participating central banks will obtain euro liquidity via loans secured by high-grade euro-denominated collateral.
The pricing for EUREP will be set at the main refinancing operations rate plus a margin determined by the Governing Council to maintain the facility's emergency support function. Individual transactions will have maturities ranging from one day to one week, with the possibility of extension. Each central bank's maximum credit line is capped at EUR 50 billion.