Deposits and Loans

The information on this website as regards deposits and loans and other products and services of the Bank are subject to specific terms and conditions which apply as well as to the Cyprus legislation, including directives of the Central Bank of Cyprus, as applicable. Prospective or existing customers potential clients interested to obtain information on such terms and conditions may either contact the Cyprus Branch at the contact details available here or refer to the Terms and Conditions available here .

Deposits and Loans in Foreign Currency Exchange Transactions

Prospective or existing clients entering with the Cyprus Branch into deposit or loan agreements in a foreign currency may be exposed to certain categories of risk, including, but not limited to:

1. Foreign Currency Risk: The risk originating from unfavorable changes in the exchange rate of the currency at which the deposit or loan is made or denominated, which a consumer may be facing due to such exchange rate fluctuations. Foreign currency risk may have a significant impact such as severe depreciation of the currency of the depositor’s income or on the amount of a borrower’s installments in a credit facility and/or the borrower’s ability to repay the amount of capital and/or interest in a credit facility. Prospective or existing clients should be in position to assess the foreign currency risk they may be facing before entering into the relevant deposit and/or credit agreement if denominated in a foreign currency. The Cyprus Branch encourages prospective or existing clients/ borrowers of credit facilities in foreign currency to obtain advice on hedging against the foreign currency risk.
2. Interest Rate Fluctuation Risk: The risk derived from unfavorable changes and fluctuations in interest rates and their consequent effect on the amount of cash held in deposit and/or the amount of principal and/or interest a credit facility/ loan and their impact on present or future value.
   1. When a fixed interest rate is made available, it remains unchanged throughout the duration of the deposit or credit agreement and will not be affected by any increases or decreases. However, this means that depositors will not benefit from increases in the base interest rates while borrowers accordingly will not benefit from any reductions in the base interest rates.
   2. When a floating interest rate is made available, such interest rate may rise as well as fall. Uncertainty concerning interest rate movements means that depositors carry a risk of a fall in the income from or potential value of their deposit if interest rates fall and/or that a borrower may not be able to meet its repayment or installment obligations in a credit facility if interest rates rise respectively.