IRCC explained: how your variable rate is calculated

IRCC (Reference Index for Consumer Credits) is the index against which variable-rate loans in Romania are adjusted. It was introduced by GEO 19/2019 as an alternative to ROBOR, to tie the rate to the real cost of money rather than a volatile interbank market.

How it's calculated

The NBR calculates IRCC as a weighted average of bank deposit rates from the previous quarter. It publishes the value on bnr.ro at the start of each quarter. Your loan rate = IRCC + the fixed margin agreed with the bank.

Example: if the current quarter's IRCC is 5.4% and the bank's margin is 3.5%, your rate is 8.9%. The monthly payment is recalculated each quarter when the NBR publishes the new IRCC.

Difference from ROBOR

ROBOR reflected daily interbank rates, so it moved quickly and sometimes dramatically. IRCC adjusts only quarterly and with a lag, so it's more stable. For the consumer, that means more predictable payments.

When variable interest makes sense

Fixed rates protect from increases but are higher at signing. Variable IRCC starts at a lower rate and suits short-term loans (under 5 years) or expectations of falling rates. On long mortgages (20-30 years), a hybrid (fixed for the first years, then variable) is a common middle ground.