OREANDA-NEWS. May 31, 2011. Ukio bankas cuts interest on REPO deals. From now on annual interest on REPO deals in litas, dollars and euro reaches from 5 to 6 per cent, reported the press-centre of Ukio Bankas.

“We aim to create the most favourable conditions of investing in securities for our most actively investing clients even when they do not have free funds on the account, i.e. by entering into securities repurchase deals. With this aim in view, we decided to reduce interest rates on these deals. We hope that upon assessing risk relating to these deals investors will take advantage of the opportunity to replenish their portfolios and will be able to more flexibly make investing decisions in changing markets,” Ruta Kalasinskaite-Kiskiene, director of Ukio bankas Financial Brokerage Department, said.

After the reduction, annual interest on repo deals in litas, euro and dollars with a maturity up to 3 months will reach 5 per cent, from 3 to 6 months – 5.5 per cent, and from 6 to 12 months – 6 per cent. Annual interest in other currencies on deals with a maturity up to 3 months will account for 7 per cent, from 3 to 6 months – 8 per cent, from 6 to 12 months – 9 per cent.

Maturity for each deal is set individually, but it may not be longer than one year, while the currency of a deal depends on the currency of trade in financial instruments (investment fund units or shares listed on stock exchanges).

A list of pledged financial instruments, information on collateral margins or any other additional information about deals is available to the clients at Ukio bankas Financial Brokerage Department.