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October 6, 2022

16 banks to join ‘First Home’ programme

The Premier said the IMF accord would be made public.

The ‘First Home’ programme has been accepted by 16 commercial banks, PM Emil Boc said while at Arad, yesterday. He added that the programme would start before he had expected, meaning at the end of June, Realitatea TV informs.

Emil Boc said the Government would draft a normative act laying down all the conditions the interested banks had been informed on. The interest arte charged by the banks within the ‘First Home’ programme may be half of the rates that are currently on the market.

‘Within the partnership we have started with the commercial banks, 16 of them have already conformed their interest in participating in the programme, observing the requirements imposed by the Government: a maximum advance payment of five per cent and a much lower interest rate than the current market rates. The interest rate may drop to even half of the existing one,’ said the Premier. He also said he was convinced of the fact that competition would make interest rates fall even further after the commencement of the programme. The other government programmes for the building of social homes will continue in parallel with the ‘First Home’ programme, according to Boc. In 2009, the Government will complete 6,000 ANL and social homes and plan to finish a total of 10,000 in 2010. The buyers of a property within the ‘First Home’ programme will pay 5 per cent interest rate, the same measure applying to social homes as well, and the participating banks must be nationally represented, require no more than five per cent down-payment and charge smaller interest rates than the current ones.

The state will guarantee for a loan of no more than EUR 60,000 – the national average price of an apartment. Real estate companies are also interested in the new government programme. Property consultancy and brokerage company Regatta states in a press release that it will cut its commission for buyers in the ‘First Home’ programme by 50 per cent and says only new properties should be included in the programme.

On the other hand, PM Emil Boc said the IMF accord would be made public, but at the moment, a few “technical details” are being discussed with the Fund’s representatives.

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