ING Bank Romania withdraws from “First Home” program
24 July 2009
ING Bank Romania has withdrawn from the "First Home" government loan-guarantee programme.
The bank announced on Tuesday it was planning to launch a similar mortgage-loan product.
The new ING product will come without a state guarantee and have a 5.5-per-cent interest rate and a ceiling of 80,000 Euros.
Retail-division manager Albert Roggemans said: "The new product will be granted extremely fast. The dwelling bought (through this programme) may be any residence in which the client wants to live, not necessarily his first one. This offer will support the government’s initiative and be a notable effort to revive the real-estate sector."
ING Bank will not participate in the government’s housing program because its guarantee procedure would generate additional costs not in conformity with the lender’s distribution model.
The bank will launch the new product this summer.
The Finance Ministry initially received offers for the "First Home" programme from 20 banks.
The government’s programme guarantees loans for the purchase or construction of a first home up to a maximum of 60,000 Euros. The guarantee covers loans to people buying a first home who have not previously had a mortgage loan.
Source: Romanian Times
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