Romanian state offers guarantees of over EUR 2.9 bln in the First House program

The Romanian state has granted over 157,000 guarantees for mortgage loans worth over EUR 2.9 billion since launching the First House program in 2009. The state guarantees are aimed to support and make it cheaper for individuals to buy their first house through mortgage loans. The National Credit Guarantee Fund for SMEs (FNGCIMM) is the state institution that issues the guarantees. The total financings granted by Romanian banks through the First House program have totaled EUR 5.9 billion. The First House program has a strong social impact, considering that the payment in advance amounts to only 5% of the house’s value, reads the FNGCIMM press release. The state guarantees cover half of the value of the purchased house, which can have a total value of up to EUR 57,000 for old houses and EUR 66,500 for newly built houses. The program will soon have a new component, which will allow beneficiaries to buy a bigger and more expensive new house, while keeping the same favorable terms. FNGCIMM has an online application which allows clients to find out the status of the requested guarantee. editor@romania-insider.com (photo source: freeimages.com)