ROBOR, the rate at which a bank is willing to lend to other banks, has reached an impressive level. The three-month index decreased to 2.15%, compared to 2.19%, the level of the previous session.
ROBOR 2020. NBR announcement: Good news for Romanians with loans
The three-month ROBOR decreased to 2.15%, compared to 2.19% in the previous meeting. On June 15, ROBOR 3M reached the lowest value (2.15%) since April 20, 2018, namely 2.13%.
The six-month ROBOR decreased to 2.23%, compared to 2.24%. On June 17, 2020, ROBOR 6M reached the lowest level since January 23, 2018, when it was 2.21%, so far.
Credits and the influence of ROBOR
The influence is felt only for loans in lei, those in euros being led by Euribor, and only those with variable interest. Fixed interest loans are not influenced by the ROBOR level, the interest being constant throughout the lending period.
Variable interest loans are loans whose interest is determined by summing the bank’s margin, ie operating expenses plus its profit, to which is added ROBOR. The interest rate used by lending banks is ROBOR at three months, as in the case of a Prima Casa loan, or at 6 months.
- The lowest value ever recorded by ROBOR 3M was 0.68%, on September 27, 2016 and October 14, 2016.
- A small value of the index is correlated with a lower rate for loans contracted in lei.
Why are interest rates on ROBOR loans?
The decision for the two to be linked to each other belongs to the Romanian State, which in 2010 legislated by Emergency Ordinance 50 (GEO 50) the conditions under which loans can be granted. The State, following a European Directive, has decided that loans can be granted with either a fixed interest rate or an interest rate linked to a reference index. Then came the benchmark, being a practice used internationally, plus its establishment is transparent.