TRM - Money Market - instalmente repayment

[Former Member]

Hello everybody,

I would like to get your assistance with this matter.

I configured a borrowing product in Money Market and this product has a specific particularity.

It has a 3 year long contract, with annual repayment installments; however, the nominal interest amount should calculate the amount based on the repayment amount only, and not on the total borrowing amount.

I created the repayment structure matching the nominal interest, so that they due together. However the system did not calculate the value due in nominal interest based on the repayment amount due in the instalment, instead calculating the value on the total based amount of the contract.

I would like to know if there is any possibility where the system will calculate the amount of nominal interest based only on the installment repayment amount due?

Thank you for your assistance with this matter.

Regards,

Fausto

[Former Member]

Hi Fausto,

maybe you are looking for 'Early Repayment'  functionality?

There is an indicator ('Accrued Int. Calc. with Capital Reduction', SEARLYREP)  in the definition of the flow type.

Best regards,

Marie

[Former Member]

Hi Marie,

First of all thank you for your reply,

This is an important point, there are no flow type and condition type in standard system with this flag active for Instalment repayment. Based on this I created other flow type and other conditions and put the flag, but the system does not respect this parameter, just ignores and works the same way that the flow type 1130. I do not understand why, system error maybe?

Examples:

Thank you in advance

Best regards,

Fausto Duque

[Former Member]

Dear Fausto,

  Capital increase and decrese flow types both should have marked 'Accrued Int. Calc. with Capital Reduction', SEARLYREP is it marked in flow type 1105 definition?

  In such case you should get automatically one interest flow per repayment (capital decrease) in line with repayment.

Regards

Kamil