Situation in homebuilding sector may be remedied in two years

The unfinished apartment buildings will be taken over from insolvable construction companies and the remaining works will be performed with budgetary resources or with money from the foreign donors, in accordance with the plan of action for remedying the situation in the homebuilding sector for 2011-2012, which was approved by the Government, Info-Prim Neo reports. Minister of Regional Development and Construction Marcel Raducan said the plan includes immediate measures aimed at preventing the ruining of the unfinished buildings and average-term measures. Under the plan of action, steps will be taken to toughen up control in the homebuilding sector, formulate and adjust the legislative framework in the area, including to promote amendments to the Law on the Condominium. There will be created a Construction-Related Risk Guarantee Fund and applied financial support instruments to issue the private individuals with home loans repayable in 20-25 years, at an interest rate of 6-8%. Marcel Raducan said a study showed that 210 of the 246 unfinished buildings are private, while 36 are in public ownership. The construction works on 81 of them were stopped, on 25 of them in 1995. A sum of 4.2 billion lei is needed to finish them, including 3.7 billion lei for the 150 blocks situated in the municipality of Chisinau. The local public authorities proposed that the construction of a part of the unfinished buildings that are in public ownership should be completed at the second stage of the social apartments building project, which is financed with loans provided by the Council of Europe Development Bank.

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