The lenders that joined the program are Banca Comerciala Romana (BCR), BRD-SocGen, Raiffeisen Bank, CEC Bank, Alpha Bank, Volksbank, Banca Transilvania, Bancpost, Banca Romaneasca, Piraeus Bank, Bank Leumi, ATEbank, Intesa Sanpaolo Bank, Credit Europe Bank, OTP Bank, Unicredit Tiriac Bank, ING Bank, Emporiki, Millennium Bank and Garanti Bank.
Pogea mentioned the Finance Ministry and the Ministry of small and medium sized enterprises (SMEs) will sign on July 2 the order of guaranteeing the funds granted by lenders for the “First House” program and soon after that each bank will ink the guaranteeing conventions.
He estimates the first house buying program will be functional by mid July. He also deems the financial market will be stabilized through this program and that will revive the constructions industry.
The banks allotted all in all 1.457 billion euros, above the 1 billion euros set by the government.
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.
Those who wish to contract such a loan must not have owned a property in the past or have contracted a mortgage loan.
Banks will set a type I mortgage right on houses purchased through this program during the entire period of the crediting contract, with the interdiction to sell the house for five years.
