The authorities have announced a number of support measures for the beneficiaries of the First House Program. First of all, the rise in the interest rate will be capped to 4 percentage points for six months and to 6 percentage points for 12 consecutive months. For July-December 2022, the measure will reduce the rise in the interest rate by one quarter compared with the current conditions of the program. The Government will also subsidize half of the rise in the remaining monthly rate, IPN reports.

Minister of Economy Sergiu Gaibu told a news conference that a bill was drafted to alleviate the shock on society following the increase in the reference index by setting the highest interest rate for the First House Program.

In the current conditions, the interest rate grew by 5.35 percentage points, from 7.37% to 12.72%. As a result of the adoption of the bill, the rise will be limited. This way, the rise in the interest rate will be decreased by 1.35 percentage points or one quarter of the rise applied in accordance with the initial conditions stipulated by the program. In accordance with the law, the interest rate is reviewed two times a year.

Furthermore, until the bill is adopted, the Commission for Exceptional Situations will issue an order to set the highest annual interest rate on loans provided within the First House Program. This will not exceed 11.37%, which is by 1.35 percentage points less than according to the standard conditions of the program. The limitation will be applied as from July 1, 2022 and the higher interest rates will be readjusted to the Commission for Exceptional Situations’ order.

Also, for the allowed 4 percentage points, the Government will develop a mechanism for subsidizing the rise for the beneficiaries of the program. The subsidy will represent 50% of the different in the increased monthly rate and previous monthly rate.

Currently, the program has 7,601 beneficiaries and a balance of loans totaling 3.8 billion lei.