The Robor and the new IRCC index, after which the credits are calculated

Banks’ customers, whether natural or legal, who have loans with variable interest carefully follow the evolution of the indices in relation to which they are calculated. Loans of variable interest are directly influenced by the Robori index, which means that the total monthly rate can increase or can be reduced according to its fluctuations.

1. What is the Roboro index?

The Romanian interbanca (Robor) offer rate means, in short, the rate with which a bank borrows other banks, the interests with which the banks involved in the calculation of the Robor offer loans to her to the banks that contribute. The Robori index for natural or legal people is calculated for 3 and 6 months maturation, calculating the 3 or 6 months arithmetic average to which the margin is added. The result is the monthly rate of the non -banking customer.

The Robori index is calculated by Thomson Reuters, a financial information company, under the supervision of the National Bank of Romania.
The factors that influence the Robori index include inflation, the liquidity of the market at a certain moment, demand and offer of liquidity, risk of investment and so on.

The Robori index is calculated transparently and displayed as transparent and the NBR and Thomson Reuters platform publish this information daily on their official websites, followed by both local and international financial institutions. Therefore, there is no doubts or errors regarding the value of this index, being an element of national importance that affects the population with variable interest loans.

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The fluctuations of the Robori index are reflected directly at the end of end customers who have variable interest rates, that is, natural or legal people. In a report in the last 10 years, the lowest value of the Robori index has been recorded in March 2016, with a value of 0.8%and the highest value was reached in March 2009, reaching 18.3%.

The factors that influence the Roboro index are the economic conditions and not the banks. They have no interest in influencing Robor because, when it grows, the bank’s income has increased, but with them the costs.
In 2010, the Romanian state gave the emergency order 50 (Geo 50), with which the Roborian index was legislated to be the one on the basis of which the value of the variable interest is calculated. This index was chosen because it is used internationally, but also because its calculation system is transparent. Therefore, the rates in her with variable interest had an interest in Roboro and a fixed margin of the bank.

Unfortunately, in 2018, against the background of the legislative changes and government decisions, inflation has increased considerably, pulling the sturdy index. This has increased the rates of end customers, natural or legal people, with amounts that have achieved several hundred of her.

3. IRCC, The new Roborian index

In 2019, the Romanian government decided to change the Roboro reference index with another, because it had grown considerably in 2018 and seriously influenced the population with loans in her with variable interest. Therefore, the National Bank of Romania has published the new reference index called IRCC.

The reference index for the credits granted to consumers (IRCC), also applies to loans in her, but those new credits and possible refinancing, not valid for loans in her with variable interest. The IRCC is applied for real estate loans, consumer credits, accounts and credit cards discoveries.

The IRCC, published on 2 May 2019 by the National Bank, with the value of 2.36%, is calculated as an artimetic media of daily interest rates for transactions between banks, from the last 3 months of last year. The emergency order 19/2019 was the legislative law that introduced the new reference index, IRCC.

As for the differences in money from the end customer pocket with credits calculated based on Robor or IRCC index, it is too early to estimate them now. BNR displayed on May 10 a Robor index at 3 months of 3.30% and an index IRCC Calculated the 4th quarter of 2018 by 2.36%. The IRCC index now offers a final amount of the lower rate compared to if the same rate had been calculated according to the Roboro index. However, we cannot express what will be the evolution of the new reference index until after a considerable period, this is influenced by economic factors such as its predecessor.