Public Finance Ministry distributes to banks additional funds for “First Home” Programme

Public Finance Ministry distributes to banks additional funds for “First Home” Programme

Bucharest, October 10, 2016/Independent Balkan News Agency

The additional funds allotted to the “First Home” Programme, amounting to 500 million lei, will be distributed to commercial banks starting on Monday, according to a Public Finance Ministry (MFP) release.

“The Public Finance Ministry approved the allotment to banks of the 500 million lei, the total amount which supplements the guarantee fund for the “First Home” Programme. The financiers having received funds are: Banca Romaneasca, Banca Transilvania, Bancpost, Bank Leumi, BCR, BRD, CEC Bank, Credit Agricole, Garanti Bank, ING Bank, Marfin Bank, OTP Bank, Piraeus Bank, Raiffeisen Bank and UniCredit,” the release points out.

“The decision to supplement by 500 million lei the total fund of guarantees that can be issued this year under the “First Home” Programme was adopted by the Government in the September 28 meeting. The additional funds will be used to cover on a priority-basis the requests for granting guaranteed funding within the Programme, which are in various stages of approval and pre-approval with the financiers,” the release also shows.

The Programme guarantee cap for 2016 had also been supplemented by 500 million lei in May. Thus, after the two increases, this governmental programme’s guarantee cap will reach 2.69 billion lei this year.

Overall, since the Programme launching in 2009 until the end of August 2016, a total number of 197,608 guarantees worth 16.88 billion lei were granted. The overdue payment rate under the “First Home” Programme currently stands at 0.3 percent.

Source: Agerpres