Romanian Pres Wants „First House” Progr To Back Newly-Built Houses, Not Flats Already Mortgaged

"I hope the “First House” program will mainly stimulate newly-built houses and that apartments already mortgaged would not be included in this program. I truly hope that," Basescu said.

The Romanian government received offers from 20 banks with a total value of more than EUR1.4 billion for the “First House” program, but the total funds allotted in 2009 for the program were limited at EUR1 billion.

So far, 13 banks signed the convention.

ING Bank Romania withdrew from the "First House" program, planning to launch a similar mortgage loan product, but without the state guarantee, with a 5.5% interest rate and a maximum ceiling of EUR80,000.

The government launched a program to guarantee the loans contracted for the purchase or the construction of a dwelling, within the maximum threshold of EUR60,000. The guarantee is granted to people buying their first house and who did not previously benefit from a mortgage loan.