Boc met Tuesday with officials of the National SME Loan Guarantee Fund and the Agency for SME Projects and Programs for talks on the “Kogalniceanu Card” and “First Home” programs. After the meeting, Boc presented data on the two programs and underscored that the Government’s measures to support of the business environment have “rescued” more than 200,000 jobs.
The prime minister also said that apartment owners who pay out of pocket for their home’s thermal rehabilitation, on the basis of an energy efficiency certificate, will be exempt from paying property taxes for seven years, subject to the local council’s approval.
Through the “Kogalniceanu Card” program, the state guarantees 80% of the value of loans taken by small and medium enterprises and subsidizes up to 50% of the interest. The state’s guarantee is capped at 100,000 lei (EUR23,000) and the interest subsidy is capped at RON125,000 per year per beneficiary. The amount provided is equal to 50% of the firm’s turnover in the last 12 months, or no more than 30% if the firm benefits from other lending incentives.
Ten banks have registered for the program: BRD Groupe Societe Generale, Banca Transilvania, Bancpost, CEC Bank, Banca Comerciala Carpatica, Alpha Bank, Garanti Bank, OTP Bank Romania, Pro Credit Bank and Unicredit Tiriac Bank.
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.
In March 2011, 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.
Boc said two weeks ago that 4,173 loan guarantees, worth a total EUR160 million, had been granted through the program’s fourth edition, including EUR80 million from the 16 participant banks and the rest from the state, through the guarantee fund. Two-room apartments accounted for the largest share of guarantees, most of which were issued in Bucharest, Cluj-Napoca and Timisoara.
(EUR1=RON4.251)