Go to the UEFA Champions League Final Madrid 2019 with MasterCard and Mobiasbanca!
National Bank governor Octavian Armașu said the higher demand for home loans on the part of citizens is due to the smaller interest rates and the support programs of the state. He developed the issue in a common interview given to the press, IPN reports.
According to the governor, the rise in the number of home loans is also due to the implementation of the state program “First House” that enables the citizens of the Republic of Moldova aged between 18 and 45 to obtain loans for purchasing a home.
Octavian Armașu said the low historical size of mortgage loans in Moldova should also be taken into account. The swift growth is also due to a smaller basis. In almost comparable countries, the size of home loans is much higher. In Lithuania, the home loans represent 37% of the portfolio, while in Georgia 56%.
“The home loans are traditionally among the least risky loans in the portfolio of banks. The nonperforming loans now represent 4% compared with the average rate of 13% in the sector,” stated the governor.
Octavian Armașu said the National Bank of Moldova as the regulator monitors and prevents risks that can derive from excessive lending. The Bank, during inspections, randomly checks home loans so as not to allow them to generate major risks. The licensed banks draw up appropriate policies to provide home loans and efficiently implement them in lending.
On November 30, 2018, the loans provided for purchasing or building a home came to 3.8 billion lei, which is 10.7% of the loan portfolio in the sector. The volume rose by 1.2 billion lei or 44% compared with the start of 2018.
SIC! project without IPN
Public Discussion: Post-electoral scenarios in view of experts in political sciences, electoral systems and sociology
Public Discussion: Please elect me MP on behalf of the U.S. - Canada Diaspora because...
Public Discussion: Please elect me MP on behalf of the Vestern Diaspora because...
Public Discussion: Please elect me MP on behalf of the Eastern diaspora because…