register now for free unlimited access to reuterscom register signage is seen outside the european central bank ecb building in frankfurt germany july 21 2022 reuterswolfgang rattay frankfurt sept 8 reuters  the european central bank said on thursday it would start remunerating government deposits in a bid to keep that cash from flooding and already replete market and ease a squeeze in bonds starting on sept 14 euro zone government cash balances at their national central banks will be remunerated at the ecbs deposit rate which was raised to 075 on thursday this is designed to help support the market for repurchase agreements or repo whereby cash is swapped for bonds this crucial market has been disrupted by the ecbs own massive debt purchases which have made safe government bonds hard to find while cash is in excess supply this change will prevent an abrupt outflow of deposits into the market at a time when some segments of the euro area repo markets are showing signs of collateral scarcity the ecb said the new remuneration will remain in place until 30 april 2023