The European Central Bank (ECB) and the Banca Naţională a României (National Bank of Romania – BNR) have agreed to set up a repo line arrangement to provide euro liquidity to the BNR to address possible euro liquidity needs in the presence of market dysfunctions due to the COVID-19 shock.
Under a repo line, the ECB provides euro liquidity to a foreign central bank in exchange for high-quality euro-denominated collateral.
Under the new repo line, the BNR will be able to borrow up to €4.5 billion from the ECB. The maximum maturity of each drawing will be three months. The repo line will remain in place until 31 December 2020, unless it is extended.