Finance Ministry modifies Prima Casa program to cut guarantees for old homes

Newsroom 07/12/2016 | 15:12

The Ministry of Finance changes the legal provisions for Prima Casa program to allow the reduction of the guarantees on loans granted for the acquisition of old buildings to 40 percent. The change will be enforced as of January 1 2017.

„Through the current project we aim to introduce some regulations regarding the state guarantee of 50 percent from the loans value of apartments acquisitions of new or consolidated buildings and for the apartments that are not in this category the guarantee will be 40 percent of the loans value for apartments’ acquisitions,” according to the amendments.

According to the document, for the Prima Casa program, a new apartment is any property that respects the requirements of having been finished with up to five years before the request of a guaranteed loan.

The main pillars of the 2017-2021 strategy are the growth of life standards by improving the living conditions in Romania and the stimulation of new apartments’ acquisitions.

„In this context, some regulations are needed at the level of primary legislation that differentiate the apartments categories that can be acquired within the program and to customize the guarantee percentages corresponding to every type of transaction,” says the Finance Ministry.