New guarantees of up to 1.25bn euros for “First home”

28 ian 2010 Ziarul Financiar

The Government can allocate up to 1.25 billion euros for the extension of the First home scheme by guaranteeing home loans, but other guarantee schemes will probably be included in this maximum sum, as well. Finance minister Sebastian Vladescu (photo) believes guarantee schemes are the best way to boost lending.

The IMF has agreed that an additional one billion euros be earmarked as guarantees for investment projects financed with money from the EU, EIB, and EBRD. The Ministry of Finance will put together a new system for selecting projects that can receive state guarantees for financing.

For last year, the Government had 7.7 billion RON (1.83 billion euros) in guarantees, less than a third of which has been used, with the IMF agreeing that the rest be allocated for 2010. The 1.25 billion euros can be used as guarantee for new loans for homes, as well as for other loan guarantees. The Ministry of Finance is working on a version of the "First home" scheme that will encourage the acquisition of new homes, but without being blocked by the European Commission as a state aid scheme.