Economics
ECB Sets Up New Backstop for Central Banks Outside Euro Area
- New backstop to provide liquidity against collateral in euros
- Precautionary line will remain available until June 2021
The European Central Bank headquarters stands in Frankfurt.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
The European Central Bank will set up a precautionary facility to provide euros to central banks outside the currency area to help ease any liquidity stress as a result of the coronavirus pandemic.
The funds will be offered against adequate collateral of euro-denominated debt securities from euro-area governments and supranational institutions, the ECB said on Thursday. The new backstop, called EUREP, will be available until June 2021.