Regulatory Alerts2019-04-25
Regulation on Securities Repurchase with the Central Bank of Kosovo
The Board of the Central Bank of Kosovo issued this regulation to establish the conditions and criteria for licensed banks to obtain short-term liquidity through collateral-backed repurchase agreements using government securities. It mandates electronic applications via the Depo X system, defines collateral valuation and margin calculations for Treasury bills and government bonds, and sets the CBK Repo rate at 0.10% based on the ECB base rate plus an adjustment spread. The framework standardizes settlement procedures, collateral pricing methodologies, and funding availability to ensure efficient liquidity management while protecting the lender against market fluctuations.
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