Romania’s objective to adopt euro in 2019 is realistic, and the country should focus in the next five years on real convergence, while the focus on lending in RON will not be a problem because the interest will be linked to Euribor, said Claudiu Cercel, Deputy CEO at BRD.

“Those who have fixed interest rates in contracts for loans in RON will continue to pay the same interest. But for most people, those with variable interest, there will be a benchmark exchange. Euribor will replace ROBOR,” said Cercel, quoted by local Mediafax.

According to him, in the first seven years since the country’s accession, Romania has focused on meeting the nominal convergence criteria, and in the next five years, the authorities should concentrate on real convergence.

Conversion of loans might be a disadvantage for individuals and companies who have taken loans with fixed interest rates and be an advantage for those with variable interest related to the market.

The Romanian Government has decided that January 1, 2019 is the target date for Romania’s euro zone entry, budget minister Liviu Voinea announced on Tuesday. More about it here.

Irina Popescu, irina.popescu@romania-insider.com