BCR, the biggest lender in Romania by assets, will grant mortgage loans worth over RON 1 billion (EUR 215 million) through the state-backed First House program.

The bank has received RON 511 million (EUR 110 million) of the RON 2 billion guarantee ceiling the Government has allotted for the program this year.

The First House program allows local banks to grant mortgage loans to individuals who want to buy or build their first house at lower costs because the state guarantees half of the loan value.

BCR will grant loans at an interest rate of 2% over the 3-month interbank rate (ROBOR 3M) with a down payment of 5% of the loan value. The maximum value of the loans is EUR 66,500 for a period of 30 years. Some 15 banks will participate in the program this year.

The First House program has supported lending recovery in Romania as banks were unwilling to finance real estate acquisitions after the 2008 crisis.

editor@romania-insider.com