In 2013, the government capped the guarantee budget for ANL homes at RON500 million and funds left unused last year may be used this year until depleted. So far, RON314.5 million has been assigned to 15 banks, covering guarantees of nearly RON8.8 million in September 2013-June 2014, meaning only 1.7% of the guarantee budget has been used.
Authorities estimate to cover guarantees of around RON5.2 million for ANL homes by the end of the year, bringing the total to just RON14 million out of a RON500 million budget.
On the other hand, this year’s guarantee budget for the First Home program excepting ANL homes has been depleted since early July and lenders have required additional funding.
The government has covered 117,716 guarantees since the start of the mortgage lending program in the second half of 2009, and 30% of homes bought under the program were built in 2008-2013. The default rate on the lending program was just 0.2%.