The program “First House” initiated by the government will enable the young people to live and work in the country, Democratic MP Corneliu Padnevici stated in the program “Reply” on Prime TV channel, IPN reports.
According to him, the given program is different from the previous one initiated by the Chisinau City Hall. This will be implemented all over Moldova. “We see than any young person in the Republic of Moldova, even from rural areas, can apply to this program to buy a home,” said the MP, noting that if some of the young people do not have salaries to purchase a house through this program, they could be financially helped by the parents who can confirm the revenues for banks.
Secretary of state at the Ministry of Finance Iurie Cicibaba said the fact that the home can be bought with the first installment of only 10% of the price is the biggest advantage of this program. “Now the banks lend 30-40% of the apartment’s price,” he stated. According to him, the interest rate within this program is by 1.5% lower than the current rate at commercial banks. The program is expected to be launched during about a month.
Pavel Borta, sales director at the Union of Real Estate Agencies, said the apartments that will be bought within the program will be new, finished ones and this diminishes the risk for applicants. “They will be able to move to the apartment the next day and could also purchase homes from the secondary market,” he stated.
Director of the Market Economy Institute Roman Chirca noted that the interest rate set by the banks that will take part in the “First House” program will be reviewed once in half a year. The variant proposed by the Government is rather intelligent as this intends to get feedback and to further improve the program. “Currently, the banks do not have experience and avoid cooperating with state programs given that a lot of situations cannot be predicted,” said Roman Chirca.
On February 22, the Cabinet endorsed the regulations concerning the implementation of the state program “First house”, which is the last document needed for putting the program into practice. The program is designed to help families to purchase the first home in more advantageous lending conditions than those existing on the market. The state guarantees 50% of the raised loan. The annual ceiling of state guarantees and the sums needed for covering these will be set annually. The 2018 state budget includes a guarantee fund of 50 million lei.
