The FINANCIAL — Bank of Georgia, leading universal bank in the country, has renewed its terms of investment deposit which can now be opened according to the variance of USD/EUR, gold and oil prices.
Investment Deposit is a standard deposit which is accrued with an interest rate. Moreover, it is an investment product which might bring additional profit to its owner. Additional benefit is interest accrued on the deposit together with guaranteed annual interest. It is connected with the changeability of the exchange rate of the USD/EUR, cost of gold and oil.
Investment Deposit has all the advantages of an ordinary term deposit of BOG and it is accrued with guaranteed interest. Simultaneously, an Investment Deposit holder is able to significantly increase annual interest and get additional profit. It is noteworthy that Bank of Georgia has re-insured the change of price on USD/EUR, gold and oil at the largest European banks.
“Investment Deposit offers a great opportunity to avoid the risk of inflation, i.e. if the exchange rate of USD depreciates against EUR at the end of the deposit term, loss caused by the drop of exchange rate is compensated in the face of additional benefit. The Bank identifies the rate of the deposit currency at the moment the contract was signed,” officials at Bank of Georgia report.
“The final rate is defined in accordance with the official exchange rate of USD/EUR by the set date. Information on the current exchange rate can be found on the website Bloomberg.com; an Investment Deposit opened with terms of USD/EUR price variance accrues a guaranteed 10% plus additional interest. Maximum interest of the deposit amounts to 21%, minimal amount of the deposit – 5,000%, term – 12 months.”
“Gold is the most sustainable currency and the safest investment. Price rise on gold is causing high inflation in the conditions of economic progress and significant growth of invested money in the economic crisis. Experts forecast price increase on gold in the next 12 months.”
“Price of gold is preliminarily identified at the moment of opening the account, as for the date of defining the final price, it is set by the contract. Price of gold is set in accordance with the price identified at the London Gold Market Fixing. If the gold price doesn’t change or reduces, the consumer receives 10% guaranteed interest. The minimal term of the Investment Deposit is 12 months, as it is impossible to get any significant profit in a shorter period. Information on the price of gold can be obtained on Sb24.ge and Goldfixing.com. An Investment Deposit opened with the term of price rise on gold accrues 10% guaranteed and additional interest. Maximum interest of the deposit amounts to 21%, minimal amount of the deposit is USD 5,000 and the term – 12 months.”
“Dealing on the price of oil is a very interesting financial instrument, as it enables one to get large additional benefit from the frequent and quick changes of the price of oil. Today the price of oil is very close to its production cost, but, although demand is reduced on oil, experts still assume that the price of oil has already reached its minimum and will start increasing in the future.”
“The initial price of oil is identified at the moment of opening a deposit, but the final price is defined on the date set by the contract. Price on oil is defined in accordance with the price on the New York Mercantile Exchange. If the price doesn’t change or reduces, guaranteed annual 9% interest will be accrued on the deposit. An Investment Deposit with the conditions of price increase is valid for 6 months, as this is the term optimal for making forecasts and identifying the volume of profit. Information on the price of oil can be obtained on the websites Sb24.ge and Nymex.com. Holder of an Investment Deposit with the terms of oil price rise will get a guaranteed 9% plus additional interest. Maximal annual interest on the deposit is 18%, guaranteed interest – annual 9%, minimum amount – USD 5,000 and the term – 6 months.”
“Investment Deposit, a completely new product of BOG, was first produced on October 24, 2008. Bank of Georgia is the first bank to offer deposits with the conditions of price variance on oil. The first offer of an Investment Deposit was issued for a certain period, i.e. December 19, 2008. By that date, the total amount of Investment Deposits had reached USD 5.3 million.”
Bank of Georgia operating in Georgia, Ukraine and Belarus, is the largest bank in Georgia with its assets, loan deposits and stock capital, the bank occupies 33% of the market share with its total assets (all data published by the National Bank of Georgia, by September 30, 2008). Bank of Georgia has 139 branches and serves more than 904,000 physical and current accounts of 133,000 corporate clients. The Bank also provides a wide range of consumer and corporate insurance products with its own insurance company Aldagi BCI. The Bank provides management services for assets and saved property.
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