The European Central Bank (ECB) and Banca Naţională a României (National Bank of Romania - BNR) have agreed to extend the framework arrangement to provide euro liquidity to the BNR via a repo line, in order 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 adequate collateral.
Under the repo line, the BNR will be able to borrow up to EUR 4.5 billion from the ECB.
It was initially agreed that the repo line would remain in place until 31 December 2020. The financial arrangement was extended until end-June 2021.