Romania’s Finance Ministry wants to supplement the funds allocated this year for the First House program by RON 250 million (EUR 55.3 million), due to the numerous requests submitted by the banks within the program.

Between January and September this year, the state granted over 27,300 guarantees worth RON 2.6 billion (EUR 576 million).

The state guarantees half of the value of mortgage loans banks grant within the First House program. Thus, the local banks granted over EUR 1.15 billion worth of loans within this program. The non-performing loans ratio within the program amounts to 0.3% of the total guarantees granted.

The First House program was launched in 2009. Since then, over 198,300 guarantees worth EUR 3.75 billion have been granted. The total loans granted within the program amounted to EUR 7.5 billion.

The program was launched during the crisis years to restart mortgage lending and stop the decline in the residential real estate market and construction sector. The reasons behind it are not valid anymore, as the real estate prices have become stable. However, the program will be prolonged for another five years, with some amendments suggested by the Finance Ministry.

editor@romania-insider.com