Homeowner associations in condominiums will be able to access loans for energy renovation of buildings more easily. The government has approved a regulation whereby the National Center for Sustainable Energy will be able to issue financial guarantees and offset a portion of the interest on the loans, reports IPN.

According to the document prepared by the Ministry of Energy, CNED will be able to guarantee up to 90% of the value of the loans contracted by associations and will be able to partially support the interest costs. The mechanism targets blocks managed by associations established under the Condominium Law.

The authorities maintain that the measure comes to address one of the main issues of the associations – the lack of necessary guarantees for accessing loans intended to cover their own contribution to energy efficiency projects. Currently, the grants offered by the Energy Efficiency Fund in the Residential sector cover up to 70% of the investment value, and the beneficiaries must ensure at least 30% of the costs.

According to the regulations, banks and non-banking lending organizations that will conclude agreements with CNED can participate in the program. Homeowners’ associations must be legally registered, have no debts to the budget, and approve the renovation project and the financing method through the general assembly.

The compensations will be granted for loans in Moldovan lei, with a repayment period of up to seven years and a maximum value of 10 million lei for each beneficiary. The effective interest rate paid by the association will not exceed 5% annually.

The Ministry of Energy estimates that, during the period 2027-2029, the mechanism will allow the financing of approximately 90 homeowners’ associations and will mobilize loans of about 172 million lei. The guarantees granted are valued at 113-155 million lei, and the interest compensations at 17-24 million lei.