The state will guarantee a maximum of 50 pct of the value of loans granted for new and/or consolidated dwellings acquisition within the governmental programme “First House”, according to an emergency ordinance approved in Thursday’s meeting of the Executive.
At the same time, loans for dwellings which do not fit into these categories will be guaranteed by the state up to 40 pct, reads a press release of the Government.
The Executive specifies that in both cases, the percentage of guarantee is measured exclusively to the loan that is targeted through the “First House” programme.
According to the press release, the normative act adopted on Thursday modifies and completes OUG 60/2009 regarding some measures in view of the implementation of the “First House” programme.
“The purpose of differentiating the dwelling categories that can be bought within this program and the individualization of the guarantee percentages depending on the category, is to create favourable conditions for the increase of the housing fund, as well as improving the existing one, in accordance with the objectives established by the Executive within the Strategy of the “First House” programme for 2017-2021, approved in the Government sitting of November 29,” the release reads.
According to the cited source, the new regulations were adopted through the OUG, for the emergency implementation, starting with January 1st ,2017, of the guidelines and established objectives for the following 5 years within the Strategy of the “First House” programme, whose main goal is increasing the living standard by improving housing conditions in Romania. Along these lines, the secondary legislation related to the “First House” Programme will be modified so as to be in agreement with the primary legislation and the principles and guidelines mentioned in the strategy.
“According to the normative act adopted today by the Government, a new house means, in the sense given by the “First House” programme, any building that complies with the conditions that allow it to be recorded in the category of housing buildings, received at the end of construction with at most 5 years before the application date of the guaranteed loan. Also, the category of new dwellings will include houses having been consolidated with at most 5 years before the loan application date,” the release also reads.
In order to ensure the functionality of the “First House” programme and to have the necessary time to develop the IT application for the implementation of the programme, the normative act introduces a transitory disposition. According to the latter, the requests for granting guaranteed financing sent within the limit of the guarantee ceiling allocated until the enforcement of the new OUG are solved by applying the legal dispositions into force before the date of their application.
The Government mentions that for 2016, the Public Finance Ministry has allocated an overall guarantee ceiling of 2,940.3 million lei, out of which 2,550 million lei new limit allocated through HG, the rest representing the difference having remained unalloted in 2015.
In January-October 2016 as many as 30,044 guarantees were granted, amounting to 2,8 billion lei. Within the programme, the non-performing loans represent 0.3 pct of the overall guarantees that were granted. So far 508 guarantees have been executed.
From 2009, when the “First House” programme was launched and until the end of October 2016, 20,080 guarantees were granted, worth an overall 17.2 billion lei, for financing worth 34.4 billion lei, the release further states.