PRIMA CASA PROGRAM STARTS IN MOLDOVA

The Program "First Home" (Prima Casa) with financial component of 1 billion lei starts on March 26 in Moldova. At the first stage, three country's leading banks joined its implementation - the Moldova Agroindbank (MAIB), the Victoriabank and the Moldindconbank (MICB), which signed corresponding agreements with the Ministry of Finance.

Finance Minister Octavian Armasu said at the Wednesday's briefing that the program is designed for all Moldovan citizens aged up to 45, who are working in public or private sector and corresponds to its conditions.

"Currently, we concluded agreements with three banks, but soon the project will be joined by two more financial institutions, which will get government guarantee on crediting young families in procuring their first housing, paying only 10% of its cost", the Minister said.

According to Ministry calculations, the 2018 budget provides 5% funds, which may be necessary for covering risks in case the sides fail to fulfill the crediting conditions. According to other countries' experience, for example Romania, where a similar program has been successfully implemented, this rate accounts for 2%.

Answering to journalists question about banks' profit from the participation in the "First Home" project, MAIB Chairman of the Board Sergiu Cebotari said that this crediting is commercial, thus the proposed interest rates will be covering bank expenditures.

"Yes, all the commissions and the rates are limited, but these should cover all the corresponding loan payment slips", Cebotari said, adding that the MAIB is ready to direct its own capital for implementation of this project, given the fact that the period of repayment will be of 25 years.

Victoriabank Chairman Bogdan Plesuvescu and MICB Deputy Chairman Victor Cibotaru welcomed the Prima Casa project, expressing readiness to be partners to the state in its successful implementation.

Bogdan Plesuvescu said that the Banca Transilvania Group has practical experience in implementing an equivalent program in Romania. Thus, the bank guarantees the support to the project both from the Victoriabank and from the side of the Romanian financial group. (Details will follow later today)