In a Currency Swap, interest rate and principal cash flows are exchanged in two different currencies with the spot rate.

1. Description

Also known as cross-currency basis swaps, the interest-rate swap transaction is a derivative in which one party exchanges a stream of interest payments for another party's stream of cash flows.

Principal amounts may be swapped at the beginning of the transaction (if any); and up / down during the transaction period or by the end of the transaction. Normally, the exchange rate used to determine the two principals is the then prevailing spot rate that two parties agreed at the beginning of initial transaction.

2. Benefit

• Allow customers to switch its loan from one currency to another. They also allow it to choose whether it have fixed- or floating-rate interest.
• Allow customers to borrow in the currency which will give it the best terms. Customers can use Cross-Currency Interest-Rate Swaps to switch the loan back into any currency it chooses.
• Reduce foreign currency exposures. Customers can use money it receives in foreign currency to pay off its loans when it switches them.
• Customers can protect themselves against changes in interest rates by creating fixed-rate loans.

3. Eligibility

Economic organizations and credit organizations made original transactions in accordance with the provisions of Vietnamese law.

4. How to apply

Required documents:

• Certificate of business registration and establishment license
• The seal, signature of customers and other authorized people
• The formal payment guideline
• Latest audited financial statements
• Contracts of credit, financial leasing, deferred purchasing, etc.

For detail, customers contact to:
Money Market Dept.
Tel : 844-62811298 Ext: 126-166 / 844-62812738
Email : tandt.pgbank@petrolimex.com.vn / hann.Pgbank@petrolimex.com.vn