Ameriabank enters into Repo/Reverse Repo transactions with a limited number of financial partners on contractual basis, with the main purpose of managing the Bank’s short-term liquidity.
One of the parties to a Repo transaction - the seller, undertakes to transfer securities into the ownership of the other party - the buyer, within the period specified in the contract, and the buyer undertakes to accept the securities and pay for them the amount defined under the contract. The buyer is then expected to sell an equivalent of the purchased securities back to the seller by a future date specified in the contract. The seller undertakes to accept the securities and pay the amount specified in the contract for them.
Important to know: Repo/Reverse Repo transactions are not executed following the public offer pattern and with consumers and/or individuals.
Note that the Bank does not apply standardized terms for such transactions: the terms are negotiated with each counterparty separately. Ameriabank enters into Repo/Reverse Repo transactions in accordance with Ameriabank CJSC’s Procedure on Funds Raising and Allocation on Money Markets (14TRD PR 72-32).