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Head Of Romanian Bk Assoc Sees „First Home” Program As First Step To Lending Revival

The “First Home” program is a first step to lending revival and will also support housing constructions and re-launch the activity of hundreds of real estate agencies, Romanian Banks Association ARB president Radu Ghetea said Wednesday.
Head Of Romanian Bk Assoc Sees
27 mai 2009, 14:09, English

The “First Home” is an interesting project that would bring about what everyone expects – lending revival – and through dwelling construction, the activity of hundreds of real estate agencies will be re-launched,” Ghetea said during a debate organized by the Parliament on lending recovery.

It is a delicate moment for lending revival and the “small steps policy” is most indicated, the central bank’s chief economist Valentin Lazea said during the debate.

“We are in an agreement with the International Monetary Fund in which targets are very strict,” Lazea added.

The National Bank of Romania, or BNR, should amend sehold lending norms in order to resume the financing on this market segment, keeping in mind the government’s "First Home" program, Ghetea said Tuesday.

The government announced last Wednesday a program to guarantee the loans taken for the purchase of the first home, within the maximum limit of EUR60,000, with the entire financing granted to this program reaching EUR1 billion.

The guarantee will be available for people buying their first home and who have not taken any mortgage loans before.