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Changes in the First House programme

According to the administrative measures that the Executive has adopted, two people instead of seven will have to associate in order to apply for homes which have to be built from zero.

Changes in the First House programme

Articol de Angela Bârgoan, 21 Ianuarie 2011, 09:32

Adopting the administrative measures allows the First House programme to continue in 2011 as well. However, the programme has undergone some changes.

One of them is that two people instead of seven will have to associate in order to apply for homes which have to be built from zero only.

The sum of 200 million euros with which the state guarantees this programme this year has been established at the cabinet meeting.

This measure would protect the interests of all the parties from future contracts, the officials from the Ministery of Finances say.

That way, the people who will get loans through this programme will put their current accounts as guarantee to the banks.
As consequence of what has been observed in practice other modifications are also taken into consideration, like other individuals who meet eligibility criteria to take over the credit and the house.

This way, the state’s collateral is prevented and the initial beneficiary can recover the costs.

This new form allows for other co-owners of the remaining portions of the house to be able to take over. The ownership becomes whole when one of the beneficiary gives up his part.
The same is in the case of a divorce or partition, if the house was bought during marriage.

Moreover, to avoid falling behind on your payments and executing collateral, there will be the possibility of rescheduling or changing the currency of the loans, respecting of course the internal loans of giving loans of the investors.

In what the allocated sum is concerned, the budget for the year 2011 is 200 million euro- Prime Minister Boc said.

‘Otherwise, the same level of state collateral will be kept, that of 75,000 euros if a house is built from scratch, 70,000 euros if a new house is bought and 60,000 euros if an old house is bought.

‘In other words, the caps from last year are available this year as well and the programme continues. At the end of the first six months, we will evaluate this programme and if extra additions are needed we will decide in July. Until then the programme will continue as it is’, the Prime Minister said.


Translated by: Iris Butnariu
MA Student, MTTLC, Bucharest University

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