ECB extends access to the existing repo-line with the National Bank until 2027

At the request of the National Bank, the European Central Bank (ECB) has decided to extend access to the repo line for an unchanged maximum borrowable amount of Euro 400 million until 31 January 2027. In addition to its foreign reserves which have reached a historical high of Euro 5 billion, the repo line provides rapid access to euro liquidity which allows the National Bank to cope flexibly with potential regional funding shocks and increased euro liquidity demand.

The National Bank has expressed its gratitude to the ECB for extending the access to the repo line. The extension of the repo line significantly contributes to the National Bank stability policies.

The National Bank gained access to the repo-line at the outbreak of the COVID-19 pandemic, in 2020, when the ECB granted access to this instrument to non-euro area central banks with the aim to prevent spillover effects on financial markets and economies in the euro area and to mitigate the adverse effects of the pandemic. The National Bank was a leader and initiator among the central banks in the region in providing access to additional funds, for strengthening the safeguard mechanisms, despite the stable level of foreign reserves and solid liquidity of banks. However, despite several successive crises, no funds from the repo line have been used.

For more information on the repo-line, please visit the ECB website: https://www.ecb.europa.eu/mopo/implement/liquidity_lines/html/index.en.html.