The program could become operational by the end of the month, Boc said, adding that the government will come up with a bill including all the conditions imposed on banks to get involved in the program.
People buying a house through the “Prima Casa” program will pay a VAT of only 5 percent, the government and bank officials decided last week.
The state will work with all the banks answering the criteria imposed by the government: national coverage, an advance payment lower than 5 percent and interests below those of the market.
Banks will be selected through a bid organized by the Finance Ministry. By allotting 100 million euros, this program could help people buy their first house, the total purchasing value standing at 1 billion euros. The maximum loan guaranteed is of 60,000 euros, the average price of an apartment, mentioned Boc a few days ago.
The program was approved by the government on May 20. The state will guarantee 80 percent of the value of a loan.
