The Central Bank pays off its liabilities to the BIS

Today the Central Bank paid off liabilities for USD 2.5 billion to the Bank for International Settlements (BIS).

As regards the early repayment of USD 5 billion agreed upon repos with international banks, the Central Bank decided to open a cheaper line of credit with the BIS by the end of July this year for gaining extra liquidity, which may make room for maneuver over the second half of the year.

Since then, the stock of international reserves has grown in excess of USD 8 billion. The Central Bank does not consider appropriate to renew this facility in light of our strengthened international reserves and the potential inflow of foreign currency as under the Law for Disclosing Foreign Assets. Regardless of its reimbursement, this facility will be an available tool to cope with external shocks.

Thus, the Central Bank has gradually improved the quality of its balance sheet by reducing the cost of its international liabilities and also by adopting relaxing measures to implement its monetary and foreign exchange policy in an effective fashion.

October 31st, 2016