The interest rates on Romania’s money market returned to the levels seen in June 2018.

Thus, the interest rate at which local banks lend to each other (ROBOR) dropped to 2.87% for the 3-month maturity on January 16 from 2.89% one day earlier. When it comes to the 6-month maturity, ROBOR dropped to 3.20% from 3.23% the day before, local Economica.net reported.

Local banks typically use the 6-month ROBOR as a benchmark in mortgage loan contracts and the 3-month ROBOR in consumer lending contracts and in revolving loan contracts with companies.

The money market interest rates have turned more important since the Government decided to levy tax on the local banks’ financial assets depending on (proportional to, in broad terms) the average money market interest rates ROBOR. Central bank’s governor Mugur Isarescu, commenting on the interest rates sliding down on the money market, said that the trend has been visible over the past months and was not driven by the Government’s new tax.

editor@romania-insider.com

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