Riksbank secures €50 billion Eurosystem EUREP repo facility
Access to the Eurosystem's standing EUREP repo facility will allow Sveriges Riksbank to borrow up to €50 billion in euro liquidity against eligible collateral. The onboarding strengthens Swedish financial stability and crisis preparedness.
A fifty billion euro liquidity backstop
Under the approved onboarding to the Eurosystem repo facility for central banks (EUREP), Sveriges Riksbank can borrow up to €50 billion in euro liquidity.
The European Central Bank established EUREP as a standing facility to provide central banks outside the euro area with a precautionary liquidity backstop.
To draw on the facility, the Riksbank must pledge eligible high-quality euro-denominated assets as collateral.
This framework is designed to support the smooth transmission of euro area monetary policy by ensuring that non-euro central banks have timely and reliable access to euro funding in times of market stress, preventing liquidity shortages from spilling across European borders.
Complementing the standing krona swap
EUREP complements the Riksbank's bilateral swap arrangement with the ECB, expanding the operational toolkit available to Swedish authorities.
While the preexisting swap line permits borrowing euros against Swedish kronor, the repo facility requires high-quality euro collateral, minimizing counterparty risk for the Eurosystem.
Together, both channels strengthen Sweden's crisis preparedness and reinforce institutional cooperation between the Riksbank and the Eurosystem during episodes of severe financial strain.
Sensible plumbing, not urgent rescue
Access to EUREP gives Stockholm a substantial euro liquidity buffer without depleting foreign exchange reserves.
Because the facility requires high-grade euro collateral, its utility depends directly on the Riksbank's asset holdings.
The arrangement functions as sensible institutional plumbing rather than an urgent crisis response.