We also established new bilateral repo agreements with the central banks of Albania, Hungary, Romania, and Serbia. This is in addition to the launch of EUREP – a repo facility not limited to a particular counterparty, but available to a broader range of central banks.
The Eurosystem’s swap and repo agreements help the ECB prevent forced asset sales by the receiving central banks, containing the risk of financial instability in the euro area and the neighbouring regions. In other words, these are arrangements of mutual benefit.