European Integration - Realities and Perspectives. Proceedings 2019
ROBOR - a “Thumbscrew” of the Romanian Financial System?
Viorica Pușcaciu1, Rose-Marie Pușcaciu2
“Inflation decreases when I decide.”
(The Savior of the Dune, Frank Herbert)
Abstract: Although present in the banking business for several years, ROBOR has recently become a much
discussed and disputed problem in the Romanian economic life. Even if - just recently, after many disputes, it
was replaced, we try to clear the situation. What is and what is the use of this banking tool that influences
financial activity and influences the lives of many of us? This paper intends to clarify – at least partly – the
importance and the main aspects of this banking instruments that lately became a true, “thumbscrew” for the
Romanian financial system. Thus, this research is meant to be an essayistic approach of this controversial
matter, which has much influenced the economic and social scene in our country. The study refers to the
functioning mechanism ROBID-ROBOR, to the reasons of which the interest rates are related to ROBOR, and
tries to answer to the question like - what are the factors that influence the evolution of ROBOR, and how this
bank index influences bank r ates. Our study is addressing both to specialists, and also to the students and
researchers which might be interested in this matter. It is a quantitative and qualitative approach of the subject
meant to be useful for anyone would read it.
Keywords: interest; loan; average rate; bank institutions; indicator
JEL classification: E43; E44; E52; E58; G12
For over half a year, ROBOR has become an apple of discord in Romanian society, and there is no day
to appear in the media. Everyone talks with concern about ROBOR, making all sorts of scenarios more
or less pessimistic about its evolution. A simple search on Google for the word “ROBOR” shows that
there are about 1,890,000 results. Why and how did this phenomenon inflame the spirits? The cost of
credit in Romania is anyway much higher than any other country in the European Union, or else
Romania's financing costs, even as a country, are excessively high. Romania has been paying the highest
interest rate for its foreign loans from all the countries of the European Union for several years. But
because we cannot compare apples to pears, let compare apples to apples, and see how we face our
neighbors of suffering in the former communist East and outside the Euro zone: if we borrow at 4.79%
interest, the Hungarians interest rates are 2.68%, the Polishs at 2.69%, the Czechs at 1.76% and the
1 Professor, PhD, Danubius University of Galati, De partment of Economics, Romania, Address: 3 Galati Blvd., Galati 800654,
Romania, Tel.: +40372361102, Corresponding author: firstname.lastname@example.org.
2 Senior Lecturer, PhD, Danubius University of Galati, Department of Economics, Galati, Romania, Address: 3 Galati Blvd.,
Galati 800654, Romania, Tel.: +40372361102, E-mail: email@example.com.