We provide banking services by providing the Customers with alternative solutions to protect the Customer's assets and liabilities against interest rate fluctuations.
Interest Rate Swap (IRS)
This is a transaction agreement between 2 (two) parties to swap assets or liabilities with a floating interest rate with assets or liabilities with a fixed interest rate or otherwise for similar currencies.
Benefits :
- As a hedging instrument of interest rate exposure.
- Available currencies are IDR and USD.
Cross Currency Swap (CCS)
This is a transaction agreement between 2 (two) parties to swap nominal principal and interest payment in different currencies, in which the nominal principal swap usually uses the exchange rate at the time of the commencement of transaction.
Benefits :
- As a hedging instrument of interest rate exposure.
- Providing flexibility to a Customer to be able to swap both the current interest and the nominal principal into another currency denomination.
- Allowing the Customers to effectively change their assets or liabilities from one currency to another currency.
- Available currencies are IDR, USD, JPY and EUR.
Terms, Conditions and Charges
- Customer of Bank Danamon.
- Making transactions directly in the Treasury.
- Having Treasury - Pre Settlement Exposure/ Settlement Risk (PSE/SR) facilities/limits and signing the FX Master Agreement and other agreements.
- The Customer passes the Customer Due Diligence (CDD) and Customer Suitability processes.
- The Customer submits all documents required by the Bank for this product.
Charges
The Swap premium cost charged on the Customer is calculated based on the reference interest rate, transaction period and margin.
