Monday, October 27, 2008

Romania: C-Bank warns won’t publish money market indices

Source: ACG News Agency

27. October 2008. | 11:27

The central bank has invited Thursday managers of seven commercial banks for talks over the recent imbalances on the Romanian money market.

The National Bank of Romania has requested seven banks to return to normal inter-bank interest rates and said it might temporarily suspend the publication of the inter-bank bid/offer indices

ROBID/ROBOR, if ROBOR exceeds by more than 25% the Lombard rate, the central bank said in a statement.

"Now, the Lombard rate is at 14.25%. So, it means that if the inter-bank interest offer rates exceed 17.8125%, the National Bank of Romania can step in,” central bank spokesman Mugur Stet said Thursday.

According to the statement, the central bank’s board has decided to amend the norms regarding the money market functioning, in order to avoid situations like in the recent days.

“The recent evolutions of the ROBID/ROBOR quotations represent a temporary and isolated situation, and the banks that were invited today were requested imperatively to return to normal rates," the statement reads.

The central bank has invited Thursday managers of seven commercial banks for talks over the recent imbalances on the Romanian money market.

Over the last week, overnight rates have shot above 50%, eroding the relevance of the central bank's official 10.25% policy rate

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