National Bank granted access to €50 billion Eurosystem repo line

The European Central Bank has authorised the National Bank of the Republic of North Macedonia to access an enhanced Eurosystem repo line (EUREP) with a maximum capacity of 50 billion euros. Once the technical joining procedures are completed, the central bank will have rapid access to euro liquidity to respond to potential financing shocks and any increased demand for euros.

Officials say the new facility is intended to reinforce the resilience of the financial system, even though the National Bank currently holds high foreign exchange reserves that remain the primary defence for macroeconomic and financial stability.

How this differs from the pandemic repo line

Until now the National Bank had access to a repo line with a cap of 400 million euros, a facility that was set up during the COVID-19 pandemic and most recently extended to 31 January 2027. The enhanced repo line (EUREP) is a permanent Eurosystem instrument with far greater capacity and a broader scope, which strengthens the safety net for euro liquidity in times of market stress.

The EUREP was established to support the smooth implementation of monetary policy. It provides ongoing access to euro liquidity for central banks and monetary authorities outside the euro area and is operated by five national central banks under the coordination of the ECB.

By granting access to EUREP, the ECB reaffirms its commitment to ensuring euro liquidity for central banks outside the euro area during periods of market strain and to supporting the orderly functioning of financial markets.

Photo: press material from the event