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Interest Rate Swap - IRS

Transactions intended for clientele who need to hedge their finances against interest rate risks.

 


Benefits

Hedging your finances against unfavourable fluctuations of interest rates. 


Other merits include:

  • swaps are not bound to the use of a loan that is the subject of security - you can use our products in spite of the secured credit being used at another bank.

 

Get Acquainted

Swaps are a group of transactions with the following characteristics:

  • the basis comprises an agreement specifying the method of calculating the amount and the timing of the future payment of finances between two participants in the trade, which are denominated in one and the same currency and which will be reciprocally remitted by the participants after a certain future period,
  • the amount of the payment is calculated as interest from the swap principal set beforehand (which is the same for both parties),
  • are the subject of the deal is the price of the swap = the amount of the fixed rate.

Interest rate swaps take place in the following variations:
 

  • one party to the deal pays interest calculated generally according to a constant or fixed interest rate (i.e. a rate that applies throughout the entire term of the swap in the same amount),
  • The other party pays interest calculated according to a floating interest rate (i.e. a rate, the specific amount of which is not known beforehand, with the exception of the first interest period, only the reference rate is specified, based upon which the specific amount of the interest rate for the given period will be calculated - for example 6M PRIBOR).

 

Terms of Use

These transactions can be used if you have a current or personal account in our bank. Minimum amount for securing with an interest swap is the equivalent of 25,000,000 CZK.


The following is required:

  • conclusion of a general contract,
  • the limit for the transaction must be set and approved.
Would you like to learn more? Call 844 117 711. The service is available on working days from 8.45 a.m. to 4.30 p.m.
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