ECB agreement with Romanian central bank expands agreements with EUREP made in March.
The European Central Bank said Wednesday that it has renewed its EUR4.5 billion repo line agreement with the Romanian central bank ( Banca Nationala a Romaniei).
Under the arrangement, the ECB could provide up to €4.5 billion of euro liquidity to the BNR in exchange for adequate euro-denominated collateral. The decision follows the announcement in March that the ECB was renewing agreements with other central banks in eastern Europe (EUREP) to extend the Eurosystem repo facility and several bilateral liquidity lines with non-euro area central banks until 15 January 2023.
According to the ECB, the agreements will, 'in the context of heightened geopolitical tensions triggered by Russia’s invasion of Ukraine', help prevent spillback effects on euro area financial markets and economies 'that might adversely affect the smooth transmission of the ECB’s monetary policy'.