First Home program to continue in 2019, with a RON 2 billion ceiling for guarantees

Aurel Dragan 04/01/2019 | 10:59

The First Home program will continue in 2019 and it will be official after the Guarantee Fund (FNGCIMM) gets the approval to start from the Ministry of Finance. This year’s ceiling for the program will be RON 2 billion.

“For 2019, a ceiling of the guarantees that can be issued according to art. 1 par. (3) of Government Emergency Ordinance no. 60/2009, approved with amendments and completions by Law no. 368/2009, with the subsequent amendments and completions, of RON 2 billion,” the FNGCIMM press release states.

The Finance Ministry also proposed the elimination of the use of the revolving value for the issue of collateral.

“In 2019, for the ceiling provided in paragraph (46), the application of the provisions of art. 2.7 of the Framework Protocol set out in Annex no. 6 to the Order of the Minister of Public Finance and of the Minister of Small and Medium-Sized Enterprises, Trade and Business Environment no. 2225/994/2009 for the approval of the Convention on the Implementation of the First House Program and the Guarantee Convention and for the regulation of certain measures necessary for the application of the provisions of art. 10 of annex no. 1 to Government Decision no. 717/2009 regarding the approval of the rules for the implementation of the “First Home” program, as subsequently amended and supplemented.”

Since the launch of the Program in 2009 until the end of October 2018, over 264,000 guarantees and promises have been granted, totaling RON 23.40 billion. In 2018, in the first ten months, 17,915 guarantees were issued, worth RON 1,7 billion, as well as 6,494 promissory guarantees, amounting to RON 0.7 billion.