In addition, the ECB agreed to bilateral euro swap and repo line arrangements with some EU and EU neighbouring countries’ central banks. It also established a new precautionary backstop facility (EUREP) under which euro liquidity can be provided against high quality euro-denominated collateral to a broader set of central banks.
By ensuring that euro liquidity is available to counterparties outside the euro area, the Eurosystem’s swap and repo agreements help prevent euro liquidity shortages from becoming financial stability risks, and support the use of the euro in global financial and commercial transactions.