Benefits

• Interest rate swaps can provide a predictable cash flow in interest, credit or liquidity management activities.
• It can be concluded to cash flows with different maturity (amortization).
• It can also be taken out on loans or fixed-term deposits with other banks.
• You can start the transaction today or even to hedge the risk of your cash flows due in the future.
• At any time before the maturity of the transaction, it can be partially or fully closed by a reverse transaction, the value of which depends on the current interest market environment.

Risks

• If you replace the variable interest payment with a fixed interest payment, you will no longer be able to benefit from a further reduction in the yield curve.
• If you replace a fixed interest payment with a variable interest payment, your protection against the rise in the yield curve will be removed.
• When you close an interest rate swap early, you may incur a profit or loss depending on current interest rate market developments.
  
  

Experts

If you have any questions, feel free to contact us.

Useful documents

These documents in English language to the person concerned shall be for information purposes only. OTP Bank Plc shall fulfil its obligations imposed by the legal regulations or requirement of supervisory authority by the documents in Hungarian language.
In the event of any discrepancy between the English language and Hungarian language versions, the Hungarian language version shall prevail.

Information on the suspension of the market making obligation (available only in Hungarian)