The European Central Bank has announced it has begun the onboarding process for non-eurozone central banks to access its enhanced repurchase facility, which is expected to become operational in the fourth quarter of 2026. This initiative is designed to support the smooth transmission of eurozone monetary policy and to strengthen the international role of the euro.
Based on the operational details finalized by the ECB's Governing Council, the facility will be executed by five eurozone national central banks—the German Federal Bank, the Bank of Spain, the Bank of France, the Bank of Italy, and the Bank of the Netherlands—under the coordination of the ECB. Through this facility, eligible central banks can borrow euro liquidity in the form of loans secured by high-quality euro-denominated assets.
The pricing will be set at the ECB's main refinancing operations rate plus a spread determined by the Governing Council, reflecting its role as a last-resort liquidity support tool. Individual transactions will have a maturity of one day to one week, with the possibility of extension. The maximum borrowing limit for each central bank is set at 50 billion euros, with comprehensive risk mitigation measures in place to protect the Eurosystem.
The facility will offer permanent access and is, in principle, open to all non-eurozone central banks and monetary authorities, except those excluded due to money laundering, terrorist financing, or international sanctions. Participating central banks will have flexible use of the funds, with no prior restrictions on their application.
Once the onboarding process is complete, the ECB stated that the relevant central banks will be able to start using the facility from the fourth quarter of 2026. The ECB will publish the total amount of liquidity provided under this facility and any currency swap arrangements on a weekly basis.
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