Press releases
The Government approved the Regulation implementing the State mortgage programme
At today’s meeting, the Cabinet of Ministers endorsed the secondary regulatory framework ensuring the implementation of the “First Home” government programme”. The document defines the basic notions and lays down the rules for granting mortgage loans through this programme.In particular, the Regulation describes the eligibility criteria for beneficiaries, housing that can be procured and commercial banks in the Republic of Moldova that intend to grant mortgage loans through the programme. Similarly, the procedure for granting credit and how to monitor and report the State guarantee is described in detail.
The approval of the “First Home” state programme regulation will be followed by certain technical procedures, such as the signing of trilateral collaboration contracts with banks and several standard contracts. The Ministry of Finance aims to carry out these actions as narrowly as possible. The period from which citizens can apply for loans, as well as the banks participating in the programme, will be announced at a later stage.
It is recalled that this programme was designed to help young people get their first homes, with more favourable lending conditions being proposed. The State has given a commitment to guarantee 50 % of the outstanding amount of the loan granted. The programme will be implemented through the Organisation for the Development of Small and Medium Enterprises (ODIMM).
The “First Home” programme will be applicable throughout the territory of the Republic of Moldova and is social in nature, represented by the government intervention in the mortgage guarantee process. The annual ceiling for the State guarantees and the sum of the financial means for calls on the State guarantees issued will be fixed annually. The 2018 state budget foresees a guarantee fund worth lei 50 million for the mortgage loans granted under this programme.