Direct grants will replace preferential credits in Government’s housing provision program
- 31.08.2010 12:39
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The Government replaced the mechanism used for providing some categories of citizens with housing, in order to avoid previously encountered problems, Info-Prim Neo reports.
Thus, citizens who possessed guarantee letters issued by local authorities, which allowed them to obtain preferential credits from banks to buy a house, will now receive direct grants from the authorities.
The Minister of Finances Veaceslav Negruta said the preferential credits system (the state paid interest rates) was replaced after numerous requests from people who were unable to obtain money from the 7 selected banks.
Overall, 3902 citizens have guarantee letters. They are people who were involved in eliminating Tchernobyl disaster’s consequences, the families of those who died there, participants in the Afghanistan war, participants in military actions for defending Moldova’s independence and the families of those who died this way, participants in World War II, people who had been politically persecuted and others.
The necessary sum rises to 138,9 millions lei and will be distributed during 5 years. In 2010, local authorities will be allotted 23,5 millions lei for direct grants.
The new regulation stipulates the money can be used to buy or build a new house, either individual or in a communal housing and to finish a building or repair an old house by victims of repressions. The maximum grant for a new house is 82,000 lei and 25,000 lei for reparations.
Between 2004 and 2009, 5520 people received preferential credits, the amount of which rises to 350 millions lei and interest rates of 98 millions.
