A Quarter Of Requests In "First Home" Program Are For Newly-Built Homes - Romanian Govt

Current data show that more than 25% of the applications for mortgage loans guaranteed by the state in the "First Home" program target newly-built dwellings, the Romanian government said Wednesday.

Government officials said that about 10,000 applications have been submitted so far, out of which more than 25% targeted the purchase of new homes.

Romania'n Prime Minister Emil Boc, finance minister Gheorghe Pogea and the president of the Guarantee Fund for SMEs Loans Aurel Saramet participated Wednesday at the signing of the first purchase contract within the "First Home" program.

This week, the government will sign the loan guarantee agreements with all participant banks, Boc said. He also reminded that the loan guarantee system will be also extended for agriculture and local authorities.

The government launched a program to guarantee the loans contracted for the purchase or construction of homes, within the maximum limit of EUR60,000. The guarantee is granted to people buying their first home and who did not previously benefit from a mortgage loan.

The government received offers from 20 banks with a total value of more than EUR1.4 billion for the "First Home" program, but the total funds alloted in 2009 for the program were limited at EUR1 billion.

mediafax.ro