Wider opportunities for financing against pledge of financial instruments

October 22, 2010, 14:17 / Banking

Starting from 1 October 2010, opportunities for receiving financing against pledge of financial instruments have been broadened.

Now we offer our customers financing in USD, EUR, or both currencies, secured with pledge of financial instruments that may be denominated not only in the financing currency, but in GBP, CHF, CAD, SEK, and RUB as well. As before, financing received against pledge of financial instruments can be used both for purchasing new instruments and replenishing current account balance.

Available amount of financing depends on category of the financial instruments. Customers are provided with more detailed information on margin requirements under each category of financial instruments, which allows determining available loan limit independently, based on market value of financial instruments constituting the portfolio.

Margin Call fee has been cancelled (earlier, the fee was withheld each time when margin call situation occurred — sometimes, daily). Now fixed interest rate of 36% p.a. is applied to the amount of financing used above the available loan limit, and this rate is included in overall calculation of weighted average interest rate. Interest for use of financing is withheld once a month.

We are glad to inform you that starting from 1 October 2010 margin requirements under investment certificates of AB.LV investment funds have been decreased, thus enabling customers to receive financing of up to 60-70% of the investment certificates’ market value.

Financing Secured with Financial Instruments.

Additional information:

Vadim Burtsev
Head of AB.LV Capital Markets Sales and Customer Service Support Department
+371 6700 2772
vadims.burcevs@ab.lv

Viola Kalnina
Manager, AB.LV Capital Markets Sales and Customer Service Support Department
+371 6700 2778
viola.kalnina@ab.lv