Romania’s Finance Ministry has launched in public debate the emergency ordinance draft that sets the rules for continuing the First House program, which allows Romanians to get cheaper mortgage loans, partly guaranteed by the state, to buy their first house.

The program, which was launched in 2009, will be prolonged for another five years. However, the Government aims to push the financings from the First House program to new homes or apartments that have been strengthened against earthquakes, reports local Profit.ro.

The state guarantees will thus be reduced to 40% of the loans’ value for the acquisition of houses older than five years. The guarantee will continue to cover 50% of the loans for houses that have been built or have been strengthened in the last five years.

By stimulating the acquisition of new or consolidated houses within the program, the authorities aim to boost the construction activity, said Finance Ministry Anca Dragu.

The state has granted close to 200,000 guarantees worth some EUR 3.8 billion within the First House program. The local banks have thus granted over EUR 7.5 billion worth of new mortgage loans with state guarantees.

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