The overdraft facility
- Current account provided with a credit line with permitted debit for an agreed market interest rate most frequently based on prices of 1-month credits on the interbanking market (1-month PRIBOR, LIBOR etc.). This rate is usually updated on monthly basis.
- Combines the advantages of a current account and a short-term credit
- The funds are available without restriction as in the current account
- The interest is similar to that of short-term credits
- No burden of the negotiation agenda, no cash flow management, no planning of a time structure of short-term credits and liquidity
- Targets clients with irregular frequency and volume of payment traffic