The Central Bank of Iceland has completed onboarding for the Eurosystem Repo Facility for Central Banks (EUREP), adding a source of temporary euro liquidity for foreign exchange reserve management and financial crisis preparedness. Access enables the bank to borrow euros against eligible securities denominated in euros, providing an additional tool for rapid liquidity provision with minimal counterparty risk.
EUREP is a standing European Central Bank facility for central banks outside the euro area, designed to address euro funding pressures abroad through backstop funding. The maximum borrowable amount for these central banks is EUR 50 billion, with actual borrowing availability dependent on the availability and value of eligible collateral.