Romanian Lenders To Meet “First House” Financing Conditions With Parent Bks Funding - Ctrl Bker

"If we look at the current resource costs and at the saving degree, there do not result financing solutions at 5%-6% interest rates. In lack of high financing at low costs, which only the stockholders could supply, we did not see such a program as viable. The interest exists, therefore the resources also exist," Dragulin said at the "Romania Financial Forum" seminar organized by MEDIAFAX and the central bank.

 

Dragulin also pointed out the lenders involved in the "First House" program claim they initiated negotiations with their parent banks and there is available financing and at costs meeting the Finance Ministry’s demand.

 

The Romanian Government launched 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 value of the offers submitted by the banks totaled EUR1.46 billion, higher compared with the maximum guarantee threshold of EUR1 billion set up by the Government.

 

The Finance Ministry received offers for the “First House” Program from 20 banks, namely BCR, BRD, Raiffeisen, CEC Bank, Alpha Bank, Volksbank, Banca Transilvania, Bancpost, Banca Romaneasca, Piraeus Bank, Leumi Bank, ATE Bank, Intesa San Paolo Bank, Credit Europe, OTP Bank, Unicredit, ING, Emporiki, Millenium Bank and Garanti Bank.

 

For euro-denominated loans, interest rates will be computed on EURIBOR (Euro Interbank Offered Rate) rates at three months plus a margin of maximum 4%, while for lei-denominated loans, interest rates will be computed on ROBOR (Romanian Interbank Offered Rate) rates at three months plus a margin of 2.5%.

 

EURIBOR is currently slightly above 1%, while the 3-month ROBOR rate was Thursday at 9.92%.