TWO MORE BANKS HAVE REDUCED THE LOAN TERM UNDER THE PRIMA CASA STATE PROGRAM FROM 25 TO 7 YEARS

Mobiasbanca - OTP Group and Eximbank have reduced the loan term under the Prima Casa state program from 25 to 7 years.

There are a total of five banks participating in the program. At the moment only Moldindconbank (MICB) and Victoriabank provide loans for 25 years for this type of financing.

Also, it is worth noting that in 2019, Moldova Agroindbank (MAIB) reduced the maximum loan term to 7 years.

According to information from banking circles, this is primarily because mortgage loans from banks are more expensive, and therefore it is more profitable for financial institutions to finance their products.

Based on the information provided on the banks' websites, the interest rate under the Prima Casa program is 6% on average in the banking system, while the effective interest rate (DAE) varies from a minimum value of 6.43% % to a maximum level of 6.75%. At the end of 2019, the average DAE was 7.3%.

In particular, the DAE value of the loan in Eximbank is 6.43%. The DAE of the loan in MICB is 6.5% and in Victoriabank - 6.54%. The rate in MAIB is slightly higher - 6.55%. The DAE indicator in Mobiasbanca is 6.75%.

At the end of 2019, the banks provided loans under the Prima Casa state program on the following terms: the DAE of the loan in MAIB and MICB was 7.3%, in Victoriabank - 7.34%, in Mobiasbanca - 7.35%, and in Eximbank - 7.37%.

As of mid-September, more than 4.9 thousand loans for 2.49 billion lei were provided under the Prima Casa state program, half of which (1.24 billion lei) were guaranteed by the state.

According to the Ministry of Finance, 3,405 out of the 4,942 beneficiaries are young families, and 1,537 are unmarried or unmarried young people. The average age of applicants is 31.3 years, the average area of housing purchased under the program is 60,18 square meters, and the average cost is 598,46 thousand lei. At the same time, 4,626 housing units were purchased in cities and 316 in villages. Of these, 4,539 are apartments, and 403 are separate residential buildings.