Andorra's Ministry of Finance has published government-approved draft legislation that would give the Andorran Financial Authority the legal and operational powers needed to access external euro liquidity, including by preparing for the Eurosystem repo facility for central banks. The framework would complement Andorra’s domestic emergency liquidity mechanism, which was established in 2022 because the country uses the euro but has no central bank or direct access to ordinary Eurosystem monetary policy instruments. The authority would be able to enter into agreements and open accounts with foreign central banks, use the necessary transaction infrastructure and mobilize high-quality assets provided by Andorran banks as collateral. It could then channel the resulting liquidity to eligible, solvent domestic institutions. External central bank funding would remain separate from Andorra’s own international reserves, which will stay at EUR 250 million, while existing solvency and viability requirements for financial institutions will remain unchanged.
2026-09-21Ministry of Finance (Andorra)
Andorra's Ministry of Finance advances draft law preparing the Andorran Financial Authority for access to Eurosystem liquidity
Andorra's government has approved draft legislation preparing the Andorran Financial Authority to access external euro liquidity, including through the Eurosystem repo facility for central banks. The authority could use high-quality bank collateral to obtain and channel funding to eligible, solvent institutions, while Andorra’s EUR 250 million international reserve framework remains unchanged.