Premier says 16 banks confirm intent to join first house program

The program could become operational by the end of the month, Boc said, adding that the government will come up with a bill including all the conditions imposed on banks to get involved in the program.

People buying a house through the “Prima Casa” program will pay a VAT of only 5 percent, the government and bank officials decided last week.

The state will work with all the banks answering the criteria imposed by the government: national coverage, an advance payment lower than 5 percent and interests below those of the market.

Banks will be selected through a bid organized by the Finance Ministry. By allotting 100 million euros, this program could help people buy their first house, the total purchasing value standing at 1 billion euros. The maximum loan guaranteed is of 60,000 euros, the average price of an apartment, mentioned Boc a few days ago.

The program was approved by the government on May 20. The state will guarantee 80 percent of the value of a loan.