What is the purpose of EUREP?
EUREP aims to support the smooth transmission of monetary policy in the euro area. By providing euro liquidity to non-euro area central banks and monetary authorities, EUREP helps to address the risks of euro funding pressures abroad that could otherwise spill over to euro area financial markets. As a liquidity backstop, it also helps to support the smooth functioning of financial markets.
What are the key features of EUREP?
EUREP is a standing facility for the temporary provision of euro liquidity to non-euro area central banks and monetary authorities. Backstop pricing makes this short-term borrowing attractive only under stressed market conditions. Transactions are priced at the main refinancing operations (MRO) rate plus a spread set by the Governing Council to preserve the backstop character of the facility. The maturity of each transaction ranges from overnight to one week and may be extended. Non-euro area central banks and monetary authorities can borrow up to €50 billion against certain high-quality euro-denominated marketable assets, representing a subset of the securities eligible for Eurosystem credit operations. EUREP-eligible collateral are marketable securities that (i) are issued by central or local/regional governments of countries in the European Economic Area, Eurosystem-recognised agencies that fulfil the quantitative criteria (excluding covered bonds), or Eurosystem-recognised supranational entities; (ii) meet the minimum rating requirement of credit quality step 3 under the Eurosystem credit assessment framework; and (iii) meet all other eligibility criteria under the general collateral framework. Assets issued by a central, regional or local government in the jurisdiction of the accessing central bank cannot be mobilised by the respective accessing central bank.
EUREP complements the bilateral swap lines arranged by the ECB with non-euro area central banks.
Who is eligible for EUREP?
In principle, all non-euro area central banks and monetary authorities can request access to EUREP, unless excluded on the grounds of, in particular, money laundering, terrorist financing or international sanctions. Access to EUREP is subject to the approval of the Governing Council.
What can EUREP liquidity be used for?
There are no ex ante restrictions on how non-euro area central banks and monetary authorities can use funds borrowed under the enhanced EUREP, as opposed to the previous EUREP facility, which was reserved for lending by non-euro area central banks to their domestic financial institutions. In view of the increased geographical scope, central banks worldwide can use the euro liquidity provided under EUREP to address a wider range of temporary funding needs.
Does EUREP increase the Eurosystem’s risk exposure?
Under EUREP the Eurosystem provides liquidity to non-euro area central banks and monetary authorities against a set of high-quality collateral. Collateral is subject to valuation haircuts, daily valuation and margin calls, as it is under the general collateral framework for Eurosystem credit operations. The Eurosystem also has a toolbox of additional risk mitigation measures at its disposal if needed. Any residual financial risk is small and can be justified as being proportionate to the policy objective of the facility. Moreover, the Governing Council retains the discretion to apply additional risk mitigation measures where necessary.
Is EUREP implementation decentralised?
Yes. While the ECB establishes the common framework and coordinates the implementation of EUREP, five Eurosystem national central banks (NCBs) act as the respective legal counterparts to non-euro area central banks and monetary authorities using the facility: Deutsche Bundesbank, Banco de España, Banque de France, Banca d’Italia and de Nederlandsche Bank. These NCBs are responsible for setting up the required cash and asset accounts and handling transactions, following the conditions of the Eurosystem reserve management services. Onboarding of non-euro area central banks and monetary authorities started in the third quarter of 2026.
What information on EUREP access is published by the ECB?
The ECB does not publish information about which central banks and monetary authorities have accessed its repo lines. Instead, the ECB will publish the total daily amount of liquidity provided under EUREP and swap lines every week.
How can a central bank request access to EUREP?
A central bank can request access via a formal request letter from the governor addressed to the ECB President. These formal requests and any related queries should be sent to EUREP@ecb.europa.eu.