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January 19, 2022

BNR: Three-month interbank rate advances to record value of 2.22 pct

Romania’s three-month interbank offered rate ROBOR, which serves as benchmark for floating-rate loans in lei, advanced on Monday to 2.22 percent from 2.13 percent on Friday, shows data of the National Bank of Romania (BNR).

The indicator had hit a similar level on December 5, 2017.

The 6-month ROBOR that is used for pricing mortgage loans went up to 2.49 percent from 2.46 percent on Friday, while the nine-month ROBOR – a measure of what banks charge each other for loans – inched up to 2.56 percent from 2.53 percent. The 12-month ROBOR hit 2.60 percent from 2.59 percent on Friday.

According to central bank data, early this year the three-month ROBOR was 2.05 percent, whereas last year it was 0.87 percent.

The rate is being calculated daily by BNR as the arithmetic average of the rates quoted by ten banks in a BNR selection.

President of Romania’s Association of Financial-Banking Analysts (AAFBR) Iancu Guda cautioned in an article on his blog that the three-month ROBOR could rise to 3.5 percent, pushing the average interest for corporate loans in domestic lei to 6 – 8 percent per annum, causing higher financing costs and an insolvency risk for some companies.

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