PM: Gov’t is amending GEO 114, Robor index to be replaced

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PM Viorica Dancila has announced at the beginning of the Government sitting on Friday morning that, based on the principles agreed with the the National Bank of Romania and the Romanian Bank Association, the emergency ordinance GEO 114 will be amended, with one of the effects being that Robor index will be replaced by a new indicator exclusively calculated based on the interbank transactions.

Dancila explained that the new benchmark will be applied only to the new loans of the population.

We talk about GEO 114/2018, GEO 50/2010 and GEO 52/2016. Through these amendments, the calculation formula of the floating interests in the contracts of the loans in RON, the Robor index will be replaced by an indicator calculated exclusively based on the interbank transactions which will be released on the BNR website. As of May 2, 2019, the new index will apply only to the new loans taken by the population,” the PM announced.

The new index will also apply to the ongoing refinancing loans.

According to Dancila, the Executive’s target is to decrease the costs of the Romanians’ loans, to increased the number of Romanian companies that will get beneficial bank loans to grow and to encourage savings by determining the grant of higher interests.

More to follow…

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