Romania’s prime minister Emil Boc said that the First Home Owners (Prima Casa) program addressing young families could be started earlier than planned and that 16 banks voiced interest over joining the program, NewsIn informs.
The program could become operational by the end of the month, Boc said, adding that the government would come up with a bill including all the conditions imposed to banks for participating in the program.

People buying a house through the “First Home” program will pay a VAT of only 5 percent, the government and bank officials decided last week.

The state will work with all the banks answering the criteria imposed by the government: national coverage, a downpayment below 5 percent and interests below the market average.

Banks will be selected through a bid organized by the Finance Ministry. By allotting 100 million euros, this program could help people buy their first home, the total purchasing value standing at 1 billion euros. The maximum loan guaranteed is of 60,000 euros, the average price of an apartment, mentioned Boc a few days ago.

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