Government subventions halted
Finance Ministry halted the payout of state installment share in state-budget subsidized housing loans.
Tuesday, 27.02.2007.
12:04
Government subventions halted
The State covers 20 percent of the loan, while the rest depends on an agreement between banks and their clients.State-budget subsidized housing loans are very popular in the market since they involve an initial payment of only 5 percent of the loan. Low initial payment provoked a mounting interest among Serbian citizens to apply for such loans. However, the Finance Ministry suspended the pay out of its envisaged share.
“We have been officially informed of the budget halt. With 16 full loan applications on our table and clients eager to hear they were granted loans, we are now found in an inconvenient situation which need an urgent settlement.”, Intesa Bank official said.
Representatives of the Societe General Bank have also complained about pending applications, impatient clients and no response from the state budget. “We now have to explain to our clients why we had to put off the realization of a loan”, a bank official said.
Finance Ministry Coordinator Milan Parivodić declined to answer as to why the suspension has taken place and how long it will last. His cabinet briefed the press that all details will be revealed soon.
The National bank of Serbia Governor Radovan Jelašić said that the Government’s measure should have a temporary character.
“Major interests are at stake, and the funds necessary to subsidize housing loans are rather trivial in scale. I’m assured that the government will go over the situation again and grant the funds, since it would be unwise to put an end to housing loans subventions at this point”, Jelašić said.
State-subsidized housing loans have been granted to 2,500 Serbian Citizens. The loan repayment is 30 years.
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