New Home programme to become operational on Aug. 15, as regulations near approval

The New Home programme will be operational on August 15, as its implementation regulations are expected to be approved next week at a government meeting, head of the National Fund for SME Loan Guarantee (FNGCIMM) Dumitru Nancu said on Wednesday.

"The regulations are close to being approved. We hope that next week the regulations will be approved at the government meeting, and on August 15 the programme will be operational. We are trying to encourage new construction. Compared with the former First Home programme, we have raised the cap to 70,000 euros. We need to encourage Romanians on higher income, and also developers to offer better terms. If a Romanian earns more, why not give him or her the opportunity to apply for the New Home programme? For any house built in the last five years and from now on, a loan of between 70,001 euros up to 140,000 euros can be accessed, with a higher advance payment of 15%," said Nancu at the COAL-live! meeting attended by entrepreneurs and administration officials, organised by the Club of Liberal Business People(COAL).

The National Credit Guarantee Fund for Small and Medium-sized Enterprises (FNGCIMM SA-IFN) recently informed in a press statement that under the New Home programme two categories of loans for new homes will be granted: loans of up to 140,000 euros for which an advance payment of 15% is charged and a state guarantee of 60% is granted, and of 70,000 euros, with an advance of 5% and a state guarantee of 50%.

"The New Home programme will grant two categories of loans for new homes (new home means any dwelling received at the end of the works no later than 5 years before the date of application for the guaranteed loan as well as homes subject to intervention works in order to consolidate and/or reduce seismic risk received at the end of the works no later than 5 years before the date of requesting the guaranteed loan): 1) loans up to 140,000 euros for which an advance payment of 15% is charged and a guarantee is granted by the government to the amount of 60%; 2) and loans of up to 70,000 euros with an advance payment of 5% and a state guarantee of 50%."