Dn Payment Of 5% For EUR60,000 Guaranteed By State In “First House” Proj

The downpayment of 5% from the loan contracted to buy the first house will be calculated for the EUR60,000 guaranteed by the state, while banks can ask for a higher down payment for the difference of the sum, and the interest will be correlated with EURIBOR (Euro Interbank Offered Rate).

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According to sources who attended the meeting between Romanian PM Emil Boc and the representatives of banks interested in attending the government’s program, the enforcement norms will be decided in a new meeting next week.

Thursday’s meeting was also attended by Finance Minister Gheorghe Pogea and central bank’s governor Mugur Isarescu.

The Romanian Government announced Wednesday a program to guarantee the loans contracted for the purchase of the first home, within the maximum limit of EUR60,000, with the entire financing granted to this program reaching EUR1 billion.

The guarantee will be granted to the persons buying their first dwelling, who did not previously benefit from a mortgage loan.

The selection criteria of Romania’s banks that will further take part in the government’s program meant to guarantee loans contracted for the purchase of the first house will include charge-free early loan repayment, a down payment of maximum 5% of the loan value, and dwelling’s evaluation procedures, PM Emil Boc said.

The Credit Guarantee Fund For SMEs will take a EUR100 million loan, with state guarantee for 80% of the amount, and its business line will be expanded to include mortgage loans.

According to the representatives of real estate agencies, developers and construction companies, the state guarantee of the loans for buying the first home may stimulate the real estate and constructions market, but the result depends on how the program will be applied and on banks’ reactions.

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