Another Moldovan bank joins First Home state programme

Chisinau, 05 April /MOLDPRES/ – Mobiasbanca – GSG Commercial Bank has announced today that it receives from citizens requests for crediting through Government Programme First Home through its 53 branches across Moldova. It is fourth bank on domestic market that included this social product in its portfolio.

The programme extends access to mortgage loan of young families who want to buy living spaces. Because this programme is done through state guarantee, product becomes more affordable compared to other real estate loans. The annual rate at which it will operate is currently about 9.03 per cent.

The first financing agreement under the First Home Program, which became operational on 26 March, was signed on 02 April by young family Nimerenco with Moldova Agroindbank.

"The programme's budget is MDL 1 billion. Which means that banks can issue loans of MDL 2 billion," said Finance Minister, Octavian Armasu.

The citizens aged 18 – 45, officially employed and not having other properties, but also mortgages, can file applications within Programme. There will be eligible revenues earned abroad by husband, wife, or first – degree relatives of those accessing programme First Home. The dwellings have to be finished, put into operation and registered in the Real Estate Register (RBI) of the Public Services Agency (ASP). The repayment term of mortgage loan, with exception of its early payment, will be up to 25 years. The maximum purchase price to be accepted for lending is MDL 1 million.

For 2018, state budget provides for a loan guarantee fund worth MDL 50 million. The programme implementation will be carried out throughout ODIMM, which is delegated to issue guarantees on behalf of the State in favour of banks participating in First Home Programme. The loans are provided by banks only in national currency (Moldovan lei, MDL). The personal contribution of beneficiary must be at least 10 per cent of total value of dwelling, i.e. three times lower than usual mortgage loans. If dwelling costs MDL 1 million, contribution of beneficiary must be at least MDL 100,000. If individual wants and has more money, first contribution may be higher, so he takes a smaller amount of loan.

Approximately ten thousand families are expected to apply for First Home Programme in 2018.

The Government intends to propose changes to normative acts and legislation that would address currency risk, expanding persons which income can be taken into account when releasing loans with second degree relatives, but also including not only employees but also entrepreneurs.

(Reporter V. Bercu, editor M. Jantovan)