THE QUICK RISE OF THE INDEX WHICH SETS THE TREND FOR INTEREST RATES ON LOANS DENOMINATED IN LEI ISN'T STOPPING

3-month ROBOR has jumped the 2% level

16 nov. 2017 English Section
EMILIA OLESCU (translated by Cosmin Ghidoveanu)
3-month ROBOR has jumped the 2% level

The 3-month ROBOR rate, which is used to calculate the interest rates, the majority of the loans denominated in lei, has jumped past the 2% psychological level, and yesterday reached 2.06%, up from Tuesday's 1.92%, according to data from the NBR.

The accelerated rise of this index, which began one month a half ago, doesn't seem to be stopping, in fact it seems to be picking up speed.

The hike of the ROBOR was unavoidable, market analysts claim, who have repeatedly warned that it isn't just in Romania that the interest rates have begun rising and that the time of low interest rates has passed. Ionuţ Dumitru, the president of the Fiscal Council recently told us: "This means that it needs to be clear for everybody. As long as inflation is rising, and it is rising rather quickly (we have 1.8% inflation in September, compared to 1.2% in August), the ROBOR will also rise. For example, our estimates for the end of the year are that inflation will reach 2.4%, 3% for the first quarter of 2018 - somewhere past 3.5% and over 4% in mid-2018. In this context it was unavoidable, and I want to emphasize that - unavoidable -, for the interest rates to rise. Whether it increases faster or slower, it can be a long talk, but the trend for the rise of the ROBOR in the coming quarters was unavoidable".

The interest rates have already risen significantly, in the market, which recently drew the attention of NBR governor Mugur Isărescu, who explained that one of the reasons which led to the booming rise of the ROBOR was the improved collection rate of the ANAF, which led to the drop of market liquidity and respectively, to the rise of the interest rate. Mugur Isărescu said: "When the general account of the Treasury is at the NBR, the money that reaches that account is a removal from the money supply, and the Ministry of Public Finance can end up having as much as 20 billion lei in its account. We gave them 9 billion lei (ed. note: as part of the Repo operation conducted after the first rise of the ROBOR, when the NBR injected 9.3 billion lei in the market), to offset the money supply which the Ministry of Finances withdrew. In September, the money was withdrawn from the market when banks were creating their Minimum Mandatory Reserve (RMO). There are two factors that coincided for the first time after many years - along with the formation of the ROMO also came the better collection from the Ministry of Public Finances. (...) And bankers got scared, because they tend to be "fraidy cats".

In October and November, the Ministry of Finance kept a good chunk of what it accumulated in September, as it will probably make large payments in December, the NBR governor said.

In the opinion of Adrian Vasilescu, strategy consultant with the NBR, a perfect tax collection rate does not necessarily depleting the liquidity of the banking system, because it is a process which goes both ways, as the Ministry of Finance both collects and spends, which is the mechanism which allows the market to adjust.

In order to manage the liquidity in the banking system, the National Bank of Romania (NBR) conducted four repo operations in October, injecting 9.3 billion lei on October 3rd, approximately 4.13 billion lei on October 10, over 1 billion lei on October 23rd and respectively 4.12 billion lei on October 30.

6-month ROBOR yesterday rose to 2.17% from 2.07%, while 9-month ROBOR rose to 2.21% up from 2,12%, and the 12-month index went from 2.17% to 2.24%.

ROBOR (Romanian Interbank Offer Rate), which represents the median rate of the interest rate for loans denominated in lei granted on the interbank market, has risen at a quick pace lately, nearing 2% rapidly, up from values below 1% in September.

Opinia cititorului

Articole din aceeaşi secţiune

English Section

Iliescu on trial - history begins now...
20 apr. George Roncea exclusively for BURSA (translated by Cosmin Ghidoveanu)


"Mission Accomplished!"
16 apr. Vlad Dobrea (translated by Cosmin Ghidoveanu)


Soros, Rothschild, Rockefeller and a buddy of mine from India are investing in the farce called Bitcoin
12 apr. MAKE translated by Cosmin Ghidoveanu


FOR THE FIRST TIME AFTER THE LOSS OF 2.6 BILLION LEI OF 2014BCR proposed the distribution of dividends
02 apr. Adina Ardeleanu (translated by Cosmin Ghidoveanu)


Does the National Bank of Romania still have a monetary policy strategy?
30 mar. Călin Rechea (translated by Cosmin Ghidoveanu)


No investor have expressed interest in the privatization of the Sanevit Arad syringe factory
28 mar. Translated by Cosmin Ghidoveanu


ALEXANDRU BOTEZ, ELECTRICA SHAREHOLDER:"Daniel Chiţoiu and ALDE are behaving as if Electrica were their own fief"
27 mar. Adina Ardeleanu (Translated by Cosmin Ghidoveanu)


Financial crisis yellow code warning in the United States
22 mar. Călin Rechea (Translated by Cosmin Ghidoveanu)


AS SHAREHOLDER,Dan Paul sues "Cemacon"
19 mar. Adina Ardeleanu (Translated by Cosmin Ghidovean)


THE NATIONAL BANK OF ROMANIA ISN'T COMMENTING, EVEN THOUGH BOTH COMMERCIAL BANKS ARE LISTED ON THE STOCK EXCHANGEPress: "The NBR has blocked the acquisition of Banca Românească by OTP Bank"
15 mar. Emilia Olescu (translated by Cosmin Ghidoveanu)

<<
Back
Accesează
versiunea desktop

Copyright MetaRing © 2003-2018.
Toate drepturile rezervate.

Legea copyright-ului şi tratatele internaţionale protejează acest site. Nimic din acest site ori din site-urile afiliate nu poate fi reprodus sub nici o formă şi în nici un fel fără permisiunea în prealabil scrisă de la Grupul de Presă BURSA.