The draft Government decision proposing the increase, which was drawn up by the Finance Ministry, was approved by the Cabinet in its Wednesday meeting.
Loan guarantees are offered based on protocols signed between lenders and the National Fund Guaranteeing Loans for Small and Medium Enterprises (FNGCIMM). The state, represented by the Finance Ministry, through FNGCIMM, and lenders will equally share risks and losses, reads the normative act.
The “First Home” program was launched in 2009, providing state guarantees for mortgage loans up to EUR60,000, and, since 2010, up to EUR70,000 for homes not yet built and EUR75,000 each for new homes bought by persons organized in associations.
Last spring, the Government decided to reduce the state guarantee to half and allow people who already own a home of no more than 50 square meters to access the program. Banks had three months to decide if they accept the new terms.