The European Central Bank and the Croatian central bank (HNB) have agreed to extend a euro liquidity line by six months until the end of June 2021, the HNB said on Friday.

The ECB and the HNB established a currency swap in April under which the HNB can borrow up to €2 billion from the ECB in exchange for Croatian kuna.

The swap was agreed to, to provide euro liquidity to Croatian financial institutions to address possible euro liquidity needs in the presence of market dysfunctions due to the Covid-19 shock. The euro liquidity line had been agreed initially until the end of 2020.

The maximum maturity for each drawing is three months.