Interest rates for long-term loans taken out by the Romanian Government have risen sharply in the recent period, reaching nearly 8% in May. Romania is currently borrowing money at the highest interest rate in the EU, according to data centralized by the European Central Bank (ECB).

In May 2021, Romania was borrowing at 3% yearly interest. Right now, the rate is 7,8%.

Poland (6,6%) and Hungary (7,2%), the other EU countries that share a border with Ukraine, also see relatively high-interest rates.

Meanwhile, other EU countries have also seen sharp increases in interest rates compared to last year, despite having relatively low current levels.

Germany, for example, was borrowing at a negative rate of -0,22% in May 2021, but is currently doing so at an interest rate of 0,95%. France went from 0,21% to 1,5%.

Romania’s interest rate for long-term loans (10 years) rose by almost 20% monthly. A lower but constant rise predates Russia’s invasion of Ukraine.

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radu@romania-insider.com