Moldovan government presents solutions to attenuate impact of interest in First Home programme

Chisinau, 13 July /MOLDPRES/ - The increase in the interest rate on the active loan in the First Home programme will be limited. The Economics Ministry has worked out a draft law, thereby proposing to attenuate the shock on the society, as a result of the increase in the reference index for setting the maximal interest rate for the First Home programme.  

„In the present conditions, the interest rate grew by 5.35 percentage points from 7.37 per cent to 12.72 per cent. Following the approval of the draft law, the concerned increase will be limited to 4 percentage points during six months and 6 percentage points during 12 months in a row. Thus, the increase in the rate will be cut by 1.35 percentage points or by about one quarter of the growth applicable according to the initial conditions established by the First Home programme. Under the future law, the interest rate will be revised twice per year,’’ Economics Minister Sergiu Gaibu said at a news conference today.   

Additionally, till the approval of the concerned draft law, the participants in a meeting of the Commission for Emergency Situations will issue an instruction, thereby establishing the maximal limit of the annual interest rate on the loans provided within the First Home state programme. Its value will not exceed 11.37 per cent. I.e. by 1.35 per cent less than according to the standard conditions of the First Home programme. The concerned limiting will be enforced starting from 1 July 2022 and the increased interests will be readjusted to the provisions of the Commission for Emergency Situations.  

At the same time, for those 4 percentage points of increase allowed, the government develops a mechanism of compensation of this increase for the programme’s beneficiaries. The compensation’s value will be at the level of 50 per cent of the difference of the increased monthly rate and the previous monthly rate.  

”The current cabinet did not increase the maximal margin applicable by banks, which remained at the level of the 2021 year. The banks’ maximal margin, from 2 to 3 per cent, has been earlier increased by the government, under the Decision No 938 from 2020. The present cabinet of ministers attenuates the deficiencies of the First Home programme which, unfortunately, put at risk the citizens just in the most difficult times,’’ Sergiu Gaibu added.   

Presently, the programme has 7,601 beneficiaries.

Photo: Economics Ministry