EBRD assists financially the mortgage credit

The European Bank for Reconstruction and Development (EBRD) could give to Moldova technical assistance in drafting the new law on mortgage, as well as financing for mortgage credit. The manager of the EBRD office in Moldova, Francis Delaey, announced about this during the round table on the topic „Mortgage in Moldova: reality and perspectives”. According to him, in order to have an advantageous mortgage market there have to exist, first of all, good and reliable macroeconomic reforms. „In this sense, government of Moldova promotes a balanced policy, but this is not sufficient. There is also need to minimise the expenses for dwellings built through mortgage way. It should exist as well a simple procedure to get the right to property, as well as a transparent appreciation of its price,” Francis Delaey noted. EBRD made last year, at government’s request, an assessment of the mortgage market in Moldova and formulated few recommendations for development of this market, showing their availability to give technical assistance in drafting the new law on. The second step of the support of the European Bank, as the manager of EBRD office in Moldova mentioned, would start next week, when the EBERD consultants will arrive in Chisinau for training commercial banks Moldova. Till the end of this year, the European Bank might open credit lines for mortgage projects of Moldova. The deputy minister of economics and commerce, Igor Dodon, mentioned that Moldova does not have a favourable legal framework that would allow development of mortgage market. That’s why, the deputy minister of economics says, there is necessary to draft a new law on mortgage that would protect the interest of all interested parts, as well as construction enterprises, population and financing bodies. In the same time, in his opinion, only the implementation of a good law will not solve all the problems of this field, there is necessary a systemic approach. During the round table, the experts of the representation Raiffeisen Bank in Moldova presented a new good for mortgage market of Moldova – the good of saving-credit. This good is directed to persons with low and average incomes who cannot pay the required bonus by other commercial banks for a real or mortgage credit. An important aspect of this project, according to experts of the representation Raiffeisen Bank, is the support given by the state to persons with low incomes, who do not have the possibility to purchase a dwelling or a plot for building a house. The good saving-crediting offers the possibility to put an amount into the account, benefiting from an interest. When the term of the deposit expires, the deponent gets a non-reimbursing support on behalf of the state and a credit on behalf of the bank with a preferential interest. These three components represent the amount that the deponent can spent when purchasing the dwelling. At the moment, the legislative framework of Moldova does not allow launching of this good. The product saving-crediting was presented to the government of Moldova. This good works successfully on Romanian market. Next week, it will be held in Chisinau the meeting of the operators on mortgage marked based on discussions regarding the development of the market. At the end of spring it could be drafted a new draft bill in the filed of mortgage.