The European Central Bank is set to open a facility allowing non-eurozone central banks to borrow euros, using sovereign debt as collateral.

The ECB’s governing council designed the new repo facility, Eurep, as a “precautionary backstop to address pandemic-related euro liquidity needs outside euro area”, it said in a statement today (June 25). Eurep will remain available until June 2021, and access to its repo lines will require the governing council’s approval.

The council said Eurep would

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