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HVB Bank to offer most favourable housing loans in Serbia
Belgrade/Vienna,
12 September 2005
Serbian Minister of Finance Mladjan Dinkic said today in Vienna that the housing loans of HVB Bank, with a nominal inflation rate of 4.45 percent at the annual level, will be the most favourable housing loans in Serbia.
Mladjan Dinkic
Author:
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Speaking at a press conference, Dinkic explained that HVB Bank has signed an agreement with the National Corporation for Housing Loan Insurance. He added that after it enters the Serbian government's programme for subsidising housing loans for those below 45 years of age, this bank's loans will most likely be even more favourable.
He said that a loan user will not have to have an endorser or pay a deposit in order to get a loan from HVB Bank. The repayment period has been extended to 25 years, and even clients older than 45 will be able to apply for a loan, but the last instalment will have to paid by the time they turn 66.
The housing loans, which will be indexed in Swiss francs, will range from €10,000 to €100, 000, and the loan user will not be required to place a mortgage on the real estate he purchases, but he can place it on any other registered real property (e.g. parents' flat). The only condition will be that the value of the real property that is being placed under mortgage be 20 percent higher than the property that is being purchased, the minister explained.
Executive Director of the Sector for Work with Citizens at HVB Bank Ivan Radojcic voiced hope that a considerable number of Serbia's citizens will be able to afford these loans, since the monthly instalment for a €30,000 loan will be €169.
According to Radojcic, HVB Bank, which will be fully integrated with Eksim Bank as of October 1, announced that it will have a total of 41 branch offices in Serbia, which currently would be the largest number of bank branch offices in Serbia. Its goal is to become the third largest bank in Serbia.
Dinkic explained that the state wants to boost competitiveness among banks in the country, which will result in more favourable loans for citizens. He added that the effective interest rate on HVB Bank's housing loans, even without the state's subsidies, stands at 4.75 percent.
The Minister of Finance voiced hope that the interest rate will be even lower when HVB Bank enters the system of subsidised loans. He announced that next year the state will introduce limits in order to avoid subsidising those who have more money.
He said that a loan user will not have to have an endorser or pay a deposit in order to get a loan from HVB Bank. The repayment period has been extended to 25 years, and even clients older than 45 will be able to apply for a loan, but the last instalment will have to paid by the time they turn 66.
The housing loans, which will be indexed in Swiss francs, will range from €10,000 to €100, 000, and the loan user will not be required to place a mortgage on the real estate he purchases, but he can place it on any other registered real property (e.g. parents' flat). The only condition will be that the value of the real property that is being placed under mortgage be 20 percent higher than the property that is being purchased, the minister explained.
Executive Director of the Sector for Work with Citizens at HVB Bank Ivan Radojcic voiced hope that a considerable number of Serbia's citizens will be able to afford these loans, since the monthly instalment for a €30,000 loan will be €169.
According to Radojcic, HVB Bank, which will be fully integrated with Eksim Bank as of October 1, announced that it will have a total of 41 branch offices in Serbia, which currently would be the largest number of bank branch offices in Serbia. Its goal is to become the third largest bank in Serbia.
Dinkic explained that the state wants to boost competitiveness among banks in the country, which will result in more favourable loans for citizens. He added that the effective interest rate on HVB Bank's housing loans, even without the state's subsidies, stands at 4.75 percent.
The Minister of Finance voiced hope that the interest rate will be even lower when HVB Bank enters the system of subsidised loans. He announced that next year the state will introduce limits in order to avoid subsidising those who have more money.
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