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.