Banco de la República approves new operation to inject liquidity

Transitional expansion operations (Repos) for $ 6.3 billion were authorized, which will be auctioned every two weeks for three months.

During this Friday’s meeting the Board of the Banco de la República They agreed to carry out a new measure to reinforce the adequate supply of liquidity to the economy and support the provision of credit that businesses and households require.

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For this reason, temporary expansion operations (Repos) with portfolio securities in the amount of up to $ 6.3 billion were authorized.

The repos will have a term of 6 months and can be accessed by credit institutions. The first auction will be held on May 14, 2020 for $ 1 billion.

The quotas for the following auctions will be announced throughout the development of the program. The Issuer plans to hold an auction biweekly, on Thursdays, during a period of three months.

It is also noted that Finagro’s access to all available temporary expansion facilities was authorized.

Lastly, the Banco de la República board of directors made changes to the Transitory Liquidity Supports (ATL). The discounts (“haircuts”) applicable to the portfolio received were reduced in line with the credit risk assessment system of the Financial Superintendence.

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