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Interest rate risk management

Interest rates reflect the economic situation in the country or in the region and can change rapidly. These changes have a direct impact on operating costs and investments of companies and financial institutions. The available tools of interest rate risk management offer protection against any adverse impacts of such changes.


Managing your interest rate risk can bring benefits for your business

  • Protection from unwanted interest rate changes
  • Fixed interest costs of long-term loans or investments
  • Possibility to take advantage of favourable market situation
  • Improved financial forecasting and budgeting

Financial risk assessment

  • Performing interest rate risk analysis related to your activities
  • Identifying potential losses due to interest rate fluctuations
  • Introducing the methods of interest rate risk management
  • Providing tailor-made hedging recommendations based on your risk exposure

Services we provide

Interest rate swap

Interest rate swap (IRS) is a bilateral agreement to exchange interest payments at agreed periodicity for a specified period by converting a variable interest rate (e.g. Euribor 3m, Euribor 6m) into a fixed one or vice versa.

Interest rate cap

Interest rate cap is an agreement under which the bank pays compensation to you in case the variable interest rate (e.g. Euribor 3m, Euribor 6m) exceeds the strike during an agreed period of time.

Interest rate floor

Interest rate floor is an agreement under which the bank pays compensation to you in case the variable interest rate (e.g. Euribor 3m, Euribor 6m) falls below the strike during an agreed period.

Interest rate collar

Interest rate collar is a transaction between you and the bank that determines the acceptable interval of the maximum and minimum variable interest rates (e.g. Euribor 3m, Euribor 6m) for agreed period.

Contact us for more information

Business customer support (I–V 8.00–17.00): +370 5 268 2822
Markets Sales (I–IV 8.00–17.00; V 8.00–15.45): +370 5 268 2838

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Markets in Financial Instruments Directive

The Markets in Financial Instruments Directive (MIFID) regulates the rendering of financial investment services and has been effective in the European Union and the European Economic Community (EEC) since 2007. The requirements of MiFID are aimed to provide additional protection to investors and promote the transparency of financial markets in terms of transactions in financial instruments.

After 3rd January 2018, new rules of the Markets in Financial Instruments Directive 2014/65/EU (MiFID II) came into force and affect each investor who engages in transactions in financial instruments.


Please note that the data, examples, and information on derivative financial instruments provided herein is for informational purposes only. This information has been prepared without consideration or regard of your knowledge or experience related to specific financial instruments and without having any information about your investment objectives or financial capacity to assume risks related to the conclusion of the transaction that meets your investment objectives; therefore, it cannot be construed as a personal investment recommendation, advice on trading in derivative financial instruments or investment research, order or invitation to buy or sell specific financial instruments and may not constitute any basis or part of any subsequent transaction. Further information on risk factors is available in the publications “Description of Risks Related to Financial Instruments” (in Lithuanian) and “Derivatives instruments description”.