FinMin Teodorovici says difference resulting from new benchmark based on interbank transactions, below ROBOR

The difference between the new benchmark index based on interbank transactions is below what the ROBOR Romanian inter-bank offer rate is now, Minister of Public Finance Eugen Teodorovici told a news conference on Tuesday.

"The difference following this new benchmark calculated against interbank transactions is below what ROBOR is today. I believe today it is 2.60 while ROBOR is somewhere over 3.2, so it clearly is a drop. It is an application of this new formula for new loans, it may be an application for ongoing loans and then, based on rescheduling requests required by the banking procedure - because you cannot step in - at least that is what the bodies accepting such projects officially tell us - so under a rescheduling request we are convinced that the bank will want to refinance under the new calculation formula. Otherwise, other banks will also be interested, and then the market share of that bank that would refuse rescheduling would decrease. It will be a competition among banks because that was the purpose of the ordinance - to stimulate the banks to finance the real economy, otherwise that tax will apply to them," Teodorovici said at the Government House.

His remarks come in response to a request to comment on Central Bank Governor Mugur Isarescu's remarks on the emergency ordinance amending Emergency Ordinance 114, among other things, on average interest rates that are calculated against daily transactions.