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ECB to implement enhanced repo facility for euro liquidity by Q4 2026
The upgraded EUREP will be run by five euro-area national central banks, with a EUR 50 billion maximum line per central bank and weekly publishing of total liquidity and swap lines.
The European Central Bank has decided on the operational setup and onboarding process for an enhanced EUREP facility first announced on February 14, aiming to support smoother monetary policy transmission and reinforce the euro's international role, according to the ECB.
The facility will be operated by five national central banks, the Deutsche Bundesbank, Banco de España, Banque de France, Banca d’Italia, and De Nederlandsche Bank, acting under ECB coordination. Onboarded central banks will receive euro liquidity via loans backed by high-quality euro-denominated collateral, priced at the main refinancing operations rate, or MRO rate, plus a spread set by the Governing Council to preserve the facility's backstop character.
Each transaction under the enhanced facility will have a maturity ranging from one day to one week and can be extended. The maximum line size per individual central bank is EUR 50 billion, and risk mitigants are in place to protect the Eurosystem.
The enhanced EUREP will provide standing access and is, in principle, open to central banks and monetary authorities outside the euro area unless excluded for reasons including money laundering, terrorist financing, or sanctions. After onboarding, central banks can draw on the facility starting in Q4 2026, and the ECB will publish the total daily liquidity provided under EUREP and swap lines weekly.