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© Reuters. FILE PHOTO: A view shows the European Central Bank (ECB) flag and the flag of the European Union in front of the ECB Building, on the day of the monthly news conference following the ECB’s monetary policy meeting in Frankfurt, Germany, September 14, 2023.
FRANKFURT (Reuters) – The European Central Bank announced on Monday that it will be making it easier for central banks from outside the European Union to borrow euros in times of crisis.
This change is aimed at helping smaller economies, such as Ukraine, outside the EU to access funds from the ECB when they are facing financial difficulties.
“Following the lessons learned during the pandemic and Russia’s war in Ukraine, the new framework will provide broader access to funds in times of crisis or when there is a high risk of a crisis occurring,” the ECB stated.
The existing repurchase-agreement facilities with the central banks of Kosovo, Montenegro, San Marino, North Macedonia, Andorra, Albania and Hungary have been extended until the end of next year, allowing these countries to borrow euros from the ECB against collateral.
At present, such “repo” lines are only available to countries that could impact the ECB’s policy due to their size, significant use of the euro, and financial and economic ties to the EU.