For borrowers, the main motives for the use of NIF are the low cost compared to traditional banking loans and their significant flexibility. Emission of the Euro -onot, for example, usually costs only to the emission and consists of paying interest on securities and premiums for NIF means that covers the cost of emission and insurance obligations if banks have to buy unsaturated securities at a pre-established minimum price. The main reason for the emission on the NIF program is, of course, the rating of the borrower. In practice, it sometimes happens that the profit is lower than the Libor rate, but much more often the profit is higher than the current market level. The Euronot program is widely used by corporations and financial institutions to increase additional capital, banks also often use it to obtain subordinated capital.
