Taking standard mortgages with IRCC interest and 3-month ROBOR respectively, rates increase by 18% for IRCC-linked loans and 14% for variable-rate loans linked to 3-month ROBOR in scenarios of interest rate increase by 2 percentage points.

The impact of rising interest rates on how Romanians manage to pay their contributions on time is becoming particularly important, the BNR said in a stability report published on Thursday.

The increase in the rates we pay to the bank leads to an increase in the median debt ratio by 2 percentage points in the case of IRCC loans (from 36% to 38%) and keeps the rate relatively constant (at 40%) in the case of 3-month ROBOR loans .

Although interest rates are higher for loans with ROBOR than for those with IRCC, the average loan value for those with ROBOR is lower than for loans with IRCC. This results in lower bank rates for ROBOR-linked loans than for IRCC-linked loans.

For New Home loans, the interest rate advance means an increase of 20% for IRCC loans and 15% for 3-month ROBOR loans.

However, borrowers whose loans were granted with 3-month ROBOR are more vulnerable to interest rate increases, given the fact that they have a significantly higher level of debt compared to loans granted with IRCC after the implementation of debt ceiling measures. (January 1, 2019).

Yes, almost a quarter of those with a standard mortgage and a third of those who borrowed through “Noua casa” with the 3-month ROBOR interest rate index have a debt level of more than 45%.

The net worth of the population increased by 10.4%, with real estate assets accounting for three quarters

According to BNR data, real estate in June 2022, compared to June 2021, rose in price by +8.5%. Otherwise, bank deposits are a better form of savings, although the interest rates offered by banks are below the rate of inflation.

According to the data of the Central Bank, there is a change in the structure of deposits, those who manage to save prefer time deposits (there are better interest rates).

The increase in prices for food products and utilities creates additional pressure on the solvency of the population, especially the most vulnerable segments of the population

Some families are coping with rising costs by reducing their savings or using money they saved before the pandemic.

Deposit savings are likely to be concentrated among higher-income families, the NBR says, while lower-income families are more exposed to an inflationary shock, spending more of their income on basic food and housing.

More than a quarter of family spending in Romania goes to food and drink, about 50% more than in Poland or the Czech Republic. In this context, some families may have to limit consumption or become dependent on government support.

At the same time, more than half of the population over the age of 15 express concern about the availability of financial resources necessary for current expenses and paying bills.

Given the significant annual increase in the price of natural gas (+70%, September 2022) and electricity (+24%), respectively, it is expected that during the current year this share of the population experiencing difficulties with home heating will increase significantly.