Interest rate instrument-55A

[prasadraju]

Dear Experts,

We have created a deal 55A Interest rate instrument start date 31.03.2013 to term end at 31.03.2016.

But now client want to change the end date to 31.03.2027.However past three years 2012-13,2013-14 &

2014-15 have already finalized. So I guess we can't reverse and post the transactions. Since interest rates and data may go inconsistence.

Please suggest me any other options to work on this issue.

Thanks ,

Prasad

[former_member566828]

Hi Prasad,

according to your description there is no need to reverse prior periods, correct?

then what you need to do is simply change maturity date of the deal via trans. FTR_EDIT and adjust other conditions if required.

hope this will help you.

Kind regards,

Renatas

[prasadraju]

Hi Renatas,

Thank you for your reply.

Last three (2013,2014,2015) fiscal year periods are closed already and books are finalized. Now if I change the end term date from 31.03.2026 to 31.03.2027. I Need clarification on below points.

1.Interest rates and installment repayment amounts will effect as difference in the changing the end term date?

2. is there any effects in the audit books since previous three fiscal year periods are closed?

3. as previous periods are closed do we need to reverse (TPM10) the deal and posted flows and repost  it  again with required changes?

4. If we reopen the closed previous fiscal year periods what is the effect in the audit books?

Please provide your valuable advice.

Thanks,

Prasad

[former_member566828]

Hi Prasad,

my assumption is that extension of the maturity date should not have effect neither on interest rate (and consequently interest payment amounts) or repayment amounts in the closed periods unless the business tell you differently - it is responsibility of the business to provide clear instructions what are the consequences of changes for a specific deal. as well, I would see no reason to reverse any postings in closed periods in the particular case.

Kind regards,

Renatas