Chronology of Eurosystem liquidity lines

The Eurosystem has regularly reviewed its liquidity line policies to ensure that they support market functioning in the euro area. This page summarises the most important changes to the Eurosystem’s framework for international liquidity lines.

The enhancement of EUREP: expanding scope and global reach

In February 2026 the ECB Governing Council introduced further enhancements to EUREP, reflecting the need to adapt to an uncertain and potentially more volatile macroeconomic and financial environment shaped by geopolitical shifts and changes in the international financial system.

These developments could result in more frequent financial disruptions and possible knock-on effects on euro area financial markets, with the potential to hamper the smooth transmission of monetary policy.

To address these risks, the ECB expanded EUREP’s scope, permanently onboarding eligible central banks and broadening its geographical coverage.

The facility is now open, in principle, to all interested central banks, except those excluded owing to concerns such as money laundering, terrorist financing or international sanctions.

The enhancements increase the geographical reach of the facility and speed up the provision of liquidity in times of need. Backstop liquidity provision to foreign central banks continues to be secured against high-quality euro-denominated collateral, with appropriate risk mitigants in place. 

The revised framework for liquidity lines: boosting agility

Building on lessons from the pandemic and geopolitical shocks such as Russia’s invasion of Ukraine, the ECB implemented a revised framework for liquidity lines on 16 January 2024.

This streamlined approach aimed to make swap and repo facilities more effective and agile while reaffirming key principles:

• liquidity lines remain monetary policy tools designed to support smooth transmission
• they act as backstop mechanisms rather than substitutes for market funding
• lending is temporary, addressing short-term liquidity needs only

During the framework review, the Eurosystem consolidated all of its repo facilities into the now permanent EUREP, replacing the previous arrangement where repo facilities were dispersed across different frameworks. This change made the system simpler, more agile and quicker to operate.

The pandemic and the creation of the Eurosystem repo facility for central banks (EUREP)

In response to the coronavirus (COVID-19) crisis, the Eurosystem set up its Eurosystem repo facility for central banks (EUREP).

The ECB also swiftly reactivated existing swap lines with several central banks and set up new precautionary arrangements with EU countries on their path to joining the euro. 

The pandemic gave rise to an additional need for a precautionary liquidity backstop in euro to cushion the financial market impact of the COVID-19 shock, which had the potential to adversely affect the smooth transmission of ECB monetary policy.

EUREP complemented existing swap and repo lines, providing liquidity support to a wider range of foreign central banks.

The Eurosystem provided backstop liquidity against high-quality euro-denominated collateral, with appropriate risk mitigants. 

The beginnings: focus on US dollar funding during crises

Since the global financial crisis, the ECB and other major central banks have increasingly established liquidity lines.

In 2007 the Bank of Canada, the Bank of England, the ECB, the Federal Reserve and the Swiss National Bank announced measures designed to address elevated pressures in short-term funding markets, in particular the US dollar market. These measures were underpinned by bilateral swap lines designed to provide foreign currency liquidity to domestic banks grappling with deteriorating funding conditions.

Recognising the importance of these tools, the five central banks – later joined by the Bank of Japan – reinstated their temporary swap lines in 2010 amid renewed market stress.

By 2013 these arrangements had been converted into permanent standing agreements, ensuring the ability to respond swiftly to foreign currency needs in future crises.

Within the Eurosystem, swap lines were made available primarily to countries with high creditworthiness and systemic importance to the euro area, as well as countries with which reciprocal arrangements had been established (i.e. a backstop foreign currency liquidity facility for euro area banks).