The European Central Bank (ECB) and the Bank of Albania have agreed to establish a repurchase agreement (Repo) line to provide euro liquidity to Albanian financial institutions, to address potential euro liquidity needs in the event of non-functioning liquidity. market due to the shock caused by COVID-19. It is stated in the press release of the ECB and the Bank of Albania.
Under the repurchase agreement line (Repo), the ECB offers liquidity in euros to a central bank of a non-euro area country in exchange for appropriate collateral in euro.
According to the repurchase agreement line (Repo), the Bank of Albania will be able to borrow up to 400 million euros from the ECB. The maximum maturity of each withdrawal will be three months. The repurchase agreement (Repo) line will be in effect until the end of June 2021, as long as no extension is set.