BII

Interest Rate Swap is a contract between two parties (Bank with a customer, or a Bank with other Bank) to do Interest rate exchange from the same currency within particular period of time. An exchange can be done between a fixed interest rate with a floating interest rate or in reverse or between a floating interest rate with a floating interest rate is still possible.

A benefit of the Interest Rate Swap for the customer is the ability to protect value over interest burden or income from the asset, in accordance with market expectation or budget plan. This transaction can be done if customer is going to/want to avoid interest rate change in particular period of time.

Time Period:
A minimum period of one year and 5 years at maximum is required for the Interest Rate Swap transaction.

How to invest with Interest Rate Swap:

• Interest Rate Swap transaction only can be done in USD and IDR currencies. A Interest Rate Swap transaction with a different currency from designated currency, only can be done after obtained approval from Treasurer.
• A minimum amount of USD. 500,000 equivalent is required for the Interest Rate Swap transaction. Any transaction request which is below the minimum amount, should obtain prior approval from Treasurer.
• Transaction conducted as according to counterparty limit/customer for the transaction of Interest Rate Swap .

General Requirements to open Interest Rate Swap:

• Customers can be legal entities/corporate or individuals
• Must have a deposit account in BII.
• To have FX facility for Interest Rate Swap ( Derivative)
• To sign an ISDA agreement
• Customer who has an account in BII and which have process KYC .
• Applicant customer is not in the Black List of Bank of Indonesia and is in BI Checking with current classification.
• Is not in BII’s internal black list