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Bks Selected In Home Loans Guarantee Progr To Accept Charge-Free Early Loan Repay

The selection criteria of Romania’s banks that will further take part in the government’s program meant to guarantee loans contracted for the purchase of the first home will include charge-free early loan repayment and dwelling’s evaluation procedures, Premier Emil Boc said Friday.
Bks Selected In Home Loans Guarantee Progr To Accept Charge-Free Early Loan Repay
22 mai 2009, 10:05, English

"One of the selection criterion will be not to charge the early loan repayment. For example, I take a loan on a 30-year period and in 5 years I have the money to pay the loan. The banks now take a charge for that, but we set the charge-free condition. The system of the dwelling’ evaluation accepted as guarantee will be equally a criterion, on the banks giving different evaluation systems," Boc said Thursday evening at B1 TV.

The other two basic criteria based on which the banks will be selected are a downpayment of maximum 5% of the loan and charge the lowest interest rates.

"We have not set any condition on the dwelling to be new or old," Boc added.

The program will be enforced in maximum 60-day period and will be "multiplied" if it turns be to be successful, with further hiking the governmental guarantee.

The loans contracted for the purchase of the first home will be guaranteed by the state 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.

Finance minister Gheorghe Pogea said the measure would lead to the resuming of lending and it would also revive the real estate market and the construction sector.