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Romanian Bks Offer Rates Up To 14% For Euro, Up To 23% For RON On „First Home” Loans – Sources

More than 20 banks filed indicative offers on their effective annual interest rate, or AER, for the “First Home” program, varying between 5.5% and 14% for euro-denominated loans, and between 13% and 23% for Romanian leu-denominated loans, government sources told MEDIAFAX.
Romanian Bks Offer Rates Up To 14% For Euro, Up To 23% For RON On
03 iun. 2009, 13:24, English

For euro loan offers, all rates are computed on Euribor rates at 3, 6 and 12 months, plus a fixed margin and the AERs fluctuate between 5.5% and 14%. For offers in Romanian lei, AERs are computed based on the ROBOR rate to which a fixed margin is added, and they rank between 13% and 23%.

The quoted sources said the lowest costs for the program in euro were offered by BRD-Groupe Societe Generale and Alpha Bank, while state-owned lender CEC Bank launched the best indicative offer for leu loans.

The Romanian Government announced two weeks ago a program to guarantee the loans contracted 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 granted to the persons buying their first dwelling who did not previously benefit from a mortgage loan.

The Romanian Government received responses from 16 banks that want to join the  program, which is due to start by the end of June, Prime Minister Emil Boc said Tuesday.