Financial Risk Protection
We offer you solutions for protection against Financial Risks
Protection against adverse interest rate market movements
Interest rate swaps (IRS) the most frequently used type of interest swap at present in Romania is the “variable versus fixed”, whereby customers transform their loans contracted at variable interest rates into credit exposures with fixed interest rate, the future flows being thus fixed for the entire lifetime of the loan. The bank offers to its clients the possibility to also change the initial currency in which a loan is denominated by entering into a cross-currency swap transaction with the clients.
Protection against adverse exchange rate market movements
The Forward Exchange Rate (FX Forward) ensures a fixed exchange rate for a future date, thus eliminating the currency risk in the respective balance sheet exposure.
The Foreign Exchange Swaps are useful in managing liquidity in order to avoid the currency risk and consist of financial transactions in which two counterparties are exchanging amounts in two different currencies at the beginning of a period and redeem them at a future date, at rates predetermined at the time of concluding the transaction.
Advantages for the company: