In Varaždin, in the office of County-prefect of Varaždin County, Member of the Management Board of Vaba bank Inc. Varaždin Marinko Benić and County-prefect of Varaždin County Radimir Čačić, signed a contract on Cash-pool through which Vaba bank Inc. offers the service of Cash-pool and enables a more favourable utilization of the financial funds of 55 institutions - utilizers of the Government Budget from the area of Varaždin County.
Besides Zagrebačka bank, that has also recently signed a contract on Cash-pool with Varaždin County for more favourable financing of local municipalities, with today's signing of the Contract Vaba bank Inc. Varaždin enables more quality, faster and cheaper management over public institutions liquidity.
All institutions - utilizers of the Varaždin County Budget, and that have an HRK account opened in Vaba bank Inc. Varaždin, are from this moment provided with the offer of joining Cash-pool, for which there is a special calculation account in the Bank. On this account positive and negative balances are evidented daily and from the positive balances payments to those members that are in need of funds are approved.
Advantages of Cash-pool membership and uses of "internal financing" for members of the Cash-pool are various, but what must be pointed out are the favourable interest rates on both lended and borrowed funds.
Members of Cash-pool that have a surplus of funds on the account receive interest on two basis - internal interest on the amount borrowed to other members of the Cash-pool, in line with the deposit interest scale, and according to the deposit amount. Members of the Cash-pool that use other member's funds also pay an internal interest for funds from the Cash-pool and interest on the Bank's funds, but only when the Cash-pool funds are unsufficient.
Funds of Cash-pool members, whose price is lower than the Bank's funds, are always used first, while the Bank's funds are only used when the Cash pool members' funds are not sufficient to execute a payment order.
Each member of Cash-pool can obtain interest over the depositing interest rate for its daily positive account balance, but can also be liquid in situation when it does not have sufficient funds on its own account - than it borrowes Cash-pool funds at a significantly lower interest rate (internal price).
Marinko Benić, Member of the Management Board of Vaba bank Inc. Varaždin pointed out: "By each membership in Cash-pool the liquidity of all members of the Cash-pool is improved, through which Vaba bank Inc. Varaždin advances the liquidity of institutions - legal entities, and with this of the Varaždin County economy as well. In this way Vaba bank Inc. obtains 55 new quality clients with approximately HRK 700 million of annual turnover over giro accounts. Cash-pool is a more quality and cheaper substitution for overdrafts approved by business banks, and also provides members that have a surplus of funds on the account with the possibility of receiving much higher interest than for regular interest for funds on the giro account."
