The European Central Bank (ECB) said on February 4 it has decided to extend its temporary swap and repo lines with non-euro area central banks by nine months, aiming to help them meet their euro liquidity needs amid the coronacrisis.
The ECB is extending the agreements with the central banks of Albania, Croatia, Hungary, North Macedonia, Romania, San Marino and Serbia until March 2022. Previously, the lines were set until June 2021.
The lines were agreed in 2020 to address possible euro liquidity needs in non-euro area countries during the economic crisis caused by the coronavirus (COVID-19) pandemic and to prevent spillback effects on euro area financial markets and economies.
Through a swap line agreement, Croatia’s central bank can borrow up to €2bn from the ECB in exchange for Croatian kuna. Albania’s central bank can borrow up to €400mn, while Hungary can borrow up to €4bn.
In North Macedonia, the central bank can borrow up to €400mn, San Marino up to €100mn, while Serbia’s central bank can get up to €1bn.
Under a repo line, central banks can borrow euro up to the specified limit in exchange for adequate euro-denominated collateral.
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