Description:
SWAps were first developed in the social sectors, principally health and education, and more than half of SWAps to date are in these two sectors.
Under the terms of swap two (fair value hedge), Inka will pay a net annual variable rate of LIBOR + .01. Inka receives fixed interest payments at 9.5% from the German counterparty, and immediately delivers those payments to the local bank. Inka also delivers variable interest payments to the counterpart. As is the case with swap one, the interest payable cash flows are subject to currency risk. #docx
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