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Romania’s Govt Extends SMEs Guarantee Fund’s Object Of Activity For „First Home” Proj

Romania’s Government extended object of activity for the National Fund Guaranteeing Loans of Small- and Medium-Sized Enterprises’ by emergency ordinance, so that it may also guarantee mortgage loans for the “First Home” project, Prime Minister Emil Boc said Wednesday.
Romania’s Govt Extends SMEs Guarantee Fund’s Object Of Activity For
28 mai 2009, 09:43, English

Last week, the government announced that the loans contracted for the purchase of the first home will be guaranteed by the state within the maximum limit of EUR60,000, the program’s total funds reaching EUR1 billion. The guarantee will be granted to the persons buying their first home who did not previously benefit from a mortgage loan, the prime minister said.

The SMEs Loans Guarantee Fund will contract a EUR100 million loan, out of which 80% will be guaranteed by the state.

Boc said Monday that he does not exclude the possibility to increase the guarantee ceiling from the current maximum EUR60,000.

The "First Home" project will be applied for a four-year period and will support the construction of around 50,000 dwellings, the Minister for Small- and Medium-Sized Enterprises, Constantin Nita, said Tuesday.

Real estate agents and the constructors’ representatives said the program will push up the local construction market only if applied at the purchase of new dwellings, as this might be a good solution to get out of the crisis and support real estate developers.