Municipal councillors are exempted from bank interest for dwellings built by mortgage method

The municipal councillors will benefit from exemptions while paying the bank interest for the dwellings built by mortgage method. This provision was included in the new Regulations regarding the financing of the bank interest for the persons employed in the budgetary system who build or buy dwellings using the mortgage method, approved at CMC’s sitting held on Tuesday, March 20. The communist councillors have rejected the proposals forwarded by “Moldova Noastra” Alliance, Social Alliance Bloc and PPCD, which suggested to exclude the councillors and budgetary persons enjoining financing from the republican budget from the list of beneficiaries of the exemptions from bank interest, and to pay the bank interest only for the persons on low incomes, employed in the municipal institutions. The councillor from social-political Movement “Ravnopravie”, Valeri Climenco, was not supported as well. He proposed to distribute the shares from the total number of interests that CMC can finance in certain branches: education, medicine etc. Councillor Mihai Roscovan stated that the aim of the CMC’s decisions regarding the financing of the bank interest for the budgetary employees is to help the underprivileged strata of people to improve their living conditions, but, while approving the list of beneficiaries, it is found that these facilitations are being enjoined largely by high public functionaries, MPs, meaning people who do not need support from the local budget, which is inadmissible under the conditions of a limited budget. As data from City Hall show, about 900,000 lei annually were paid by the local budget in recent years for the bank interest. According to the submitted applications, about 1.1 mln lei are expected to be paid this year. Under the approved document, the persons who work at the moment in the budgetary system in Chisinau municipality, have at least a two-year length of service in a budgetary institution and their living conditions need to be improved, will have their bank interests paid by the municipal budget. According to the draft decision, the paying of the bank interest from the municipal budget will be ceased in case the person retires from the budgetary system, without having a ten-year length of service in this system. The bank interest that would be paid from the local budget will be calculated resulting from the terms stipulated by the mortgage credit contracts, concluded with the financial institutions, and by the investment contracts regarding the construction of the dwelling space concluded with the construction companies. At the same time, it must not be higher than the basic interest (11%) for the long-term credits established by the National Bank.