Romanian PM Says New “First Home” Program To Start After Easter

The prime minister met with SME loan guarantee fund president Aurel Saramet to analyze offers made by banks, after the Government decided that the state will guarantee 50% of the value of loans through the program.

Speaking after the meeting, Boc said unofficial data show at least three banks are willing to participate in the "First Home" program under these new conditions.

The Government decided Wednesday that the state will guarantee 50% of the value of loans through the "First Home" program, which will now be open to owners of homes with an area no larger than 50 square meters.

The caps on the loan's deposit, interest rate and guarantee amount will not be changed.

Banks have three months to decide whether to participate in the "First Home" program under these new conditions.

People close to the matter told MEDIAFAX that the age limit has also been eliminated, meaning the program is now open to people older than 35.

The "First Home" program was launched in the summer of 2009. Through it, the state guarantees loans for the purchase of a new home up to EUR60,000, in the case of older buildings or buildings under construction, and EUR70,000, in the case of planned buildings. Buyers organized into associations were eligible for state guarantees of up to EUR75,000.

"First Home" loans in local currency have an interest rate calculated as three-month ROBOR plus up to 2.5 points, while those in euro use EURIBOR as reference, plus up to 4% per year.

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