ECB and National Bank of Serbia set up repo line to provide euro liquidity

• ECB and National Bank of Serbia set up repo line
• Repo line to remain in place until June 2021, unless an extension is decided
• Size of repo line set at €1 billion

The European Central Bank (ECB) and Народна банка Србије (National Bank of Serbia) have agreed to set up a repo line arrangement to provide euro liquidity to Serbian financial institutions 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 non-euro area central bank in exchange for adequate euro-denominated collateral.

Under the repo line, the National Bank of Serbia will be able to borrow up to €1 billion from the ECB. The maximum maturity of each drawing will be three months. The repo line will remain in place until the end of June 2021, unless an extension is decided.

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