Preferential interest rate

For any purchase of currencies in an amount over EUR 5,000, the clients may obtain preferential rates (within stable market conditions) compared to the regular rates indicated in the official Exchange Rate List of the Bank on the purchase date.

Foreign Exchange Forward

FX Forward

FX Forward or Currency Forward means buy and sell of currencies on a future date under preferential fx rate.

The purpose of this product is to hedge the current cash flows. As basis for calculation of the FX Forward rate is used the current market rate and the interest rate differentials for the currency pair for which the transaction – FX Forward is concluded.

Non Deliverable FX Forward

Non-deliverable FX Forward is a forward transaction where there is no change of the cash flow at maturity but only the difference between the contracted price and spot market rate is calculated and paid.

This product is mainly used for hedging foreign currency liabilities (the amount of undue principal of foreign currency loans) on the date of development of financial statements (quarterly or often annual on 31.12).

Currency Swap (FX Swap)

Currency or FX Swap is an agreement between two parties to exchange amounts in two different currencies at pre-agreed rates. In practice two transactions are made, one of which is FX Spot purchase (sale), and the other FX Forward sale (purchase) of a foreign currency. The future purchase and sale rate is determined identically as in FX Forward transactions.