The European Central Bank (ECB) and the National Bank of Romania (BNR) have renewed the framework arrangement for the provision of liquidity in euros for the BNR through the Repo line until January 31, 2025, according to a press release from the BNR.

„The European Central Bank and the National Bank of Romania have agreed on the renewal of a framework agreement for the provision of liquidity in euros for the BNR, through a Repo line. The liquidity lines aim to prevent funding tensions on the international markets and some undesirable effects on the stability of the financial markets. Based on this agreement, the BNR can borrow up to 4.5 billion euros from the ECB. The Repo line will be able to be used until January 31, 2025, if it is not extended,” the press release reads.

According to the source, within a Repo line, the ECB provides liquidity in euros to a foreign central bank in exchange for adequate guarantees, in order to meet the possible emergence of a large demand for the European currency.

AGERPRES