Large corporates call for Prima Casa expansion
PRIMA CASA REVAMP Romanian large corporate lobbying group the Foreign Investors’ Council (FIC) is calling for the Government-backed home loan scheme Prima Casa (First Home) to guarantee homes for larger amounts and include not only first-time buyers November 2010 - From the Print Edition
Under the two existing Prima Casa schemes, first time buyers can purchase pre-1989 homes worth 60,000 Euro and new apartments worth up to 75,000 Euro with Government-backed loans from private banks at low interest rates.
Under FIC’s not-only-the-First Home proposal the state would guarantee only 50 per cent of the price of the loan, allowing the rest to be guaranteed through a bank mortgage.
The proposal would stretch “beyond first time buyers” and include “larger quantities” according to Dominic Bruynseels, FIC board member and CEO of bank BCR Erste. “It would also stimulate the economy and the construction sector and could be activated quickly and have an immediate impact,” he added.
After the success of Prima Casa 1 and 2, Bruynseels said it is time to “increase the scale and the scope” of the Government backed guarantee scheme.
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