The President’s elder daughter on Friday made public the requirements she had to meet in order to be granted the CEC Bank loan
Ioana Basescu submitted an application form to be granted a loan to purchase the Nana farmland on August 30, 2013, the request was approved on September 6 and she signed the loan agreement on September 9. The President’s daughter has to pay a monthly installment of RON 30,206 by August 2043.
On Friday, Ioana Basescu made public the documents regarding the purchase of the 290 hectares in the Nana commune (the Calarasi county), i.e. the sales and purchase agreement, the mortgage agreement and loan agreement.
According to the aforementioned documents, the land was purchased from the SC Berfige SRL company, represented by Bertola Fioravante, an Italian citizen having his residence in Monaco. The selling price was RON 5,844.864.26, namely EUR 1,306,845. The amount of RON 1,244.864.26 was paid by Ioana Basescu from her own financial sources by bank transfer, and the rest of the amount from the loan granted by CEC Bank, the pilot unit Victoria. The document was sealed on September 9.
The mortgage agreement, signed on September 9, stipulates that guarantor Ioana Basescu agrees to the establishment and registration of a first lien real estate mortgage in favour of the bank for the price of RON 4,600,000 plus interests, penalties, related costs and charges. The farmland price was put at RON 7,215,390, by 23 per cent more than the amount paid for it. The total estimated value of real estate real guarantees is RON 7,215,390, out of which the bank accepts RON 5,050,773 as guarantee. The loan agreement regards “a real estate investments loan” for 30 years, stipulating that Ioana Basescu’s own contribution is 21.30 per cent of the acquisition value. The annual interest rate varies along the entire period of the loan agreement and is calculated depending on the ROBOR index at 3 months on July 1 (4.63 per cent) plus the fixed margin of 1.9 percentage points.
According to information published on the CEC Bank’s website, the features as regards the mortgage loans for real estate investments (purchase of land) are: floating rate of 6.73 per cent (ROBOR 6M + 1.90 percentage points). The currently considered ROBOR 6M interest level is 4.83 per cent, valid on 1st July 2013. According to the same source, the loan is granted to individuals aged 18 years or more, who earn stable incomes that must be permanent all through the lending period. The maximum granted amount is RON 2.8 million, and the maximum lending period is 35 years. The personal contribution should be at least 15 per cent of value of the land.
The loan taken out by Ioana Basescu will be reimbursed by 360 monthly installments by August 8, 2043. The total amount Ioana Basescu must pay the bank is RON 10,896.378.24, with RON 4,600,000 accounting for the value of the loan, RON 5,863,686.88 the interests, RON 500 the file analysis fee and RON 432,191.36 the loan management fee.
Two weeks ago, President Traian Basescu confirmed that he was the one who convinced his elder daughter Ioana to buy the agricultural land, also pointing out that he wants to transfer the property into his name and become a farmer. The head of state said he tried to take out a mortgage, but the bank refused to grant him the loan considering his income.