Romania Plans To Continue Housing Program In 2011 – Sources

On Monday, Romania’s Prime Minister Emil Boc said the housing program, that has been changed by the government to stimulate the newly-built homes, is operational in its new form as of March 8.

Boc said the guarantee fund for the small- and medium-sized enterprises, or FNGCIMM, is ready to receive the banks’ guarantee demands as of Monday.

At the end of last week, Boc said the fund signed the guarantee convention for the new housing program with 21 banks.

For 2010, the fund’s ceiling in the housing program is of EUR700 million.

Romania’s government launched last year a program to guarantee the mortgage loans taken by first-time buyers. The guarantees are granted by FNGCIMM.

According to the government’s February changes brought to the housing program, the loan for buying a home through the respective program will be guaranteed within the limit of EUR60,000 for the old or already-built homes, and of EUR70,000 – for the constructions under project. Buyers partnering up will receive a state guarantee of EUR75,000 each for the new houmes.

Prior the government’s February changes, the bank loans contracted through the housing program were guaranteed within a limit of EUR60,000, regardless of the year in which homes were built.