Repo (from English Repurchase, or briefly Repo) – an agreement to sell a financial instrument today and buy it back in future:

• Customers are offered an opportunity to sell to the Bank for a period of time their owned financial instruments issued by states, municipalities, or companies and quoted on the stock market and over-the-counter with the condition to buy them back after a certain period.

Repo services are designed for:

• Aggressive investors who seek to raise the yield of their portfolio using borrowed funds;
• Less aggressive investors who seek to optimize their cash flows.

An advantage of Baltikums Bank is a wide range of rendered Repo products – financing against bonds, shares, fund certificates, and other financial instruments.

The recommended minimal amount at which the Bank offers repo transactions – USD/EUR 100 thousand per transaction.

Baltikums Bank a range of repo transactions execution conditions tailored for each customer and financial instrument:

• Financing amount;
• Haircut;
• Financing interest rate;
• Other provisions.

Baltikums Bank applies a flexible approach to managing customer risks resulting from repo transactions.

Baltikums Bank offers various types of repo financing against securities to a widest range of customers:

• Repo;
• Reverse Repo;
• Fiduciary Repo;
• Other.

Required Provisions for Repo Transactions

To perform repo transactions with customers Baltikums Bank:

• Determines:
  • Transaction object (financial instrument);
  • Term;
  • Amount;
  • Financing conditions (interest rate);
• Determines the initial level of the collateral necessary for executing the transaction:
  • Initial Margin;
  • Or haircut.

The initial financing amount is set:

• As certain percentage of the market value of the financial instrument involved in the transaction;
• And depending on its risk qualities that might affect the fluctuation level of the market value of the instrument.