The Romanian Ministry of Finance wants to increase the loan-guarantee ceiling for the country’s First Home program by RON 500m this year. Following discussions on the debt-relief bill, applications for loan guarantees under the program increased significantly, and the ceiling set for this year has already been exceeded. As of the beginning of May, 13,100 loan guarantees worth RON 1.2bn were granted, up from approximately RON 668m and RON 536m granted in 2015 and 2014.
Since launching in 2009, more than 178,000 loan guarantees have been granted to first-time home-buyers, representing a total loan-guarantee volume of about RON 15bn. The program’s loan default rate is 0.34 percent.
