Zurich headquartered Julius Baer has apparently informed clients booked at its Singapore branch that it is about to impose negative rates on cash balances in selected currencies from as early as June.
An article in Singapore publication «The Straits Times» highlighted that the bank had contacted clients recently to update them on the new punitive conditions.
The report pointed out that an interest rate of -0.4 per cent a year will be applied if a cash balance exceeds 100,000 euros, while a rate of -0.75 per cent will be levied for a cash balance of more than 500,000 Swiss francs. Other currencies affected include the Swedish krona and the Danish krone.
No Comment
According to the media report Julius Baer did not wish to make any comment on the negative rate issue. However the client correspondence indicated that the applied interest rates and list of currencies exposed to negative interest rates could be amended, dependant upon market conditions.
