Fine record for banks over ROBOR manipulation hits pensioners with loans

Romania's Competition Council has imposed a record fine of over 700 million euros on a group of ten banking institutions, following an investigation into the manipulation of the ROBOR benchmark rate. This unprecedented decision in the Romanian banking market has direct implications for millions of Romanians, including pensioners and seniors who hold loans taken out before May 2019.

Exclusively obtained documents indicate that the banks in question breached competition rules by exchanging confidential information related to the fixing of the ROBOR reference interest rate. This practice is alleged to have artificially inflated repayment rates on existing loans, directly affecting the budgets of families and seniors who had planned their expenditure based on lower borrowing costs.

For pensioners who took out mortgage loans, consumer loans, or variable-rate credit cards before May 2019, this manipulation meant higher repayments than would have been the case under fair market conditions. The impact is particularly significant for seniors on fixed pension incomes, who have limited resources to cope with unexpected costs.

The President of the Competition Council, Bogdan Chirițoiu, clarified that this does not constitute a classic cartel, but rather a series of multiple contacts between banking institutions that influenced the benchmark rate. He explained that the full decision, along with detailed reasoning, will be published within a maximum of four months.

The report has also been submitted to the European Commission for validation of the fine, underscoring the gravity of the situation identified. For affected consumers — particularly seniors with active loans — this investigation opens up the prospect of compensation for losses incurred in previous years.

The case highlights the importance of monitoring banking practices and protecting vulnerable consumers, including seniors, who are often less familiar with the complex mechanisms of financial markets and may be more easily disadvantaged by such manipulation.