ECB extends bilateral euro liquidity lines with SEE central banks by nine months

By bne IntelliNews February 4, 2021

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.

Related Articles

EIB surpasses investment milestone in the Western Balkans by investing €1.2bn in 2023

EIB Global, the financial arm of the European Investment Bank (EIB) for activities beyond the EU, set a new record by investing €1.2bn in the Western Balkans in 2023, the EIB said on February 9. ... ... more

Albanian banks’ profits reach ALL28bn in 2023

Albanian banks reported profits of ALL28.5bn (€271.7bn) in 2023, according to data from the Albanian Association of Banks. All banks in the country reported a profit for the year.  The most ... more

bne IntelliNews Southeast Europe Outlook 2024

This Southeast Europe Outlook 2024 has been prepared by bne IntelliNews as part of a series of annual reviews providing updates on the geopolitical, macroeconomic and commercial state of ... more

Dismiss