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May 17, 2022

Boc: 4,170 guarantees were extended through the First Home 4 programme

Premier Emil Boc said Friday that 4,173 guarantees, worth EUR 160 M, have been extended so far through the First Home 4 programme, of which EUR 80 M were provided by the 16 participant banks and the remainder by the state’s guaranteeing fund, Mediafax reports.

“The programme achieves its purpose of supporting mainly those that do not own a house, to acquire one and stop paying rent,” Boc said after a meeting with the top management of the National Guarantee Fund for SMEs (FNGCIMM).

According to the premier, most loans were extended for two-room apartments in Bucharest, Cluj-Napoca and Timisoara.

In a different move, Boc announced that, as of September 9th, small and medium-sized enterprises (SMEs) will be allowed to apply online for the government programme called ‘Cardul Kogalniceanu’ (the Kogalniceanu Card) that will give them access to subsidised interest and state guarantees for loans. Via the latest budget rectification, the government allotted EUR 24 M for subsidies through this programme, he explained.

Boc added that FNGCIMM extended this year guarantees worth EUR 300 M to about 6,000 SMEs. Authorities estimate that more than 10,000 SMEs will receive guarantees by the end of this year.

Through the ‘Cardul Kogalniceanu’ programme, the state will guarantee 80 pc of the loans taken by SMEs and will subsidise their interest by a maximum 50 pc. The state guarantee may not exceed RON 100,000 and the interest subsidy cap has been set at 125,000 RON/year/beneficiary.

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