"First Home": Government to withdraw and redistribute up to EUR 280 million

"First Home": Government to withdraw and redistribute up to EUR 280 million

The Romanian Government will withdraw 220-280 million euro guarantees from seven banks that approved no loan or very few loans to buy a house via the “First Home” program, and redistribute the funds to other lenders, which had been  more active with the program,according to the officials.

Three banks granted not a single loan and other four banks only used 0.1% to 3% of the alloted amounts, said Aurel Saramet, head of National Loan Guarantee Fund for SMEs, which grants the guarantees in the "First Home" program.

The following banks will be subject to the guarantee withdrawal: Emporiki, Intesa, Credit Europe, Bancpost, Piraeus and CEC.

On the other hand most loan applications were approved by BRD, BCR, Raiffeisen, Banca Transilvania and Volksbank. They will get supplementary funds.

Romania's National Loan Guarantee Fund for SMEs Loans approved so far 4,740 loan application files in the "First Home" program, most of them for old apartments, build before 1989, Prime Minister Emil Boc said.