Romania Raises Guarantee Cap For New Housing Purchases To EUR75,000

The government will also increase the total guarantees ceiling for new buildings, Prime Minister Emil Boc said at the end of Wednesday’s Cabinet meeting.

The changes are subject to government approval next week.

Early January, the government decided that people sealing sale-purchase precontracts through the housing program before February 15, 2010 would benefit from state guarantees according to the current system, and teh program would be then changed to stimulate the purchase of new dwellings.

Last year, the government launched a program to support home acquisitions with a total budget of EUR1 billion. According to the current conditions, the state grants a guarantee of EUR60,000 at most to people wishing to buy homes using mortgage loans.

The Government has already reassigned for 2010 around EUR500 million from 2009’s unused guarantee funds.