The banks that already voiced their interest are Banca Transilvania, Volksbank, Raiffeisen Bank, Millennium Bank, Leumi, BRD-SocGen and ATEBank.
Alpha Bank, Banca Romaneasca, CEC Bank and Banca Comerciala Romana will also send their offers by the end of the day, confides Saramet and estimates that some 300-400 million euros more will be raised.
The deadline for handing in offers expired today. “Tomorrow when we have a final picture we may be 10-15 percent below the maximum margin of 1 billion euros,” said the fund's head.
The government has 1 billion euros to guarantee mortgages for the “First House” program. Banks granting mortgage loans through the “First House” program can apply a margin of maximum 4 percent per year over the EURIBOR interest rate at 3 months for credits in euros and a margin of 2.5 percent the most over the ROBOR rate at 3 months for credits in lei. The lenders also need to have national coverage. Moreover, they will not ask for any commissions for anticipated payback and will not unilaterally modify the lending contract.
Romania's Prime Minister Emil Boc explained on June 14 that a person who wishes to take a mortgage loan of 50,000 euros for 25 years through the “First House” program will make a downpayment of 5 percent and will pay a maximum 41,000 euros in interest for the period, compared to 81,000 euros under the current market conditions.
Those who wish to contract such a loan must not have owned a property in the past or have contracted a mortgage loan.
People who wish to take a loan larger than 60,000 euros will make a down payment of 3,000 euros plus the difference between the value of the home and 60,000 euros. Thus, for a home worth 100,000 euros, the down payment will stand at 3,000 euros plus 40,000 euros, as this program also has a social component, explained Boc.
