Currency Interest Rate Swap
CIRS makes it possible to secure your currency and interest rate risks. The transaction is a contract under which cashflow is swapped between counterparties, provided that payments in one currency are replaced by payments in the other currency. As a result of the swap of interest payments, you change the currency in which you pay or receive interest, and change the interest rate at which interest is accrued (from variable to fixed and vice versa).
How do you benefit:
proactive management of the risk involved in foreign currency borrowings,
hedging against your interest rate and currency risks,
change of the currency breakdown of your balance sheet,
highly liquid instrument which makes it possible to close the transaction at any moment during its term,
reduced cost of financing.
