Q:
A:
New subsidised housing loans from October 1
Belgrade,
14 September 2009
Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic today announced that as of October 1 Serbian citizens will be able to purchase flats through state subsidised loans of up to €100,000, with a 30 year repayment period.
Mladjan Dinkic
At a press conference for the new subsidised housing loans for citizens and the effects of the government programme to mitigate the financial crisis, Dinkic said that citizens below 45 years of age will be entitled to apply for said loans.
He noted that at the session on September 17 the government will adopt the new programme of housing loan subsidies, adding that the loans will be approved only for purchasing new flats, flats under construction and for building new houses.
The Deputy Prime Minister said that citizens will have to provide a 5% down payment, adding that the state will provide interest-free loans for 20% of the price while banks will grant loans for the remaining 75%.
The repayment period is 30 years at the most. In the first three and the last five years the repayment is interest-free because the state will fully subsidise the interest rate, he explained.
Dinkic said that the monthly income of the borrower or the borrower’s household must be double the monthly instalment, specifying that those with a total monthly income of up to RSD 120,000 may apply for the loan.
He said that the housing loans will be interest free for all applicants until October 31, 2012. He added that starting from November 2012, loan beneficiaries will start paying off the interest, ranging from 4.9% to 5.9%, over a period of 22 years. He explained that during the final five years the beneficiaries will be repaying the last 20% of the loan which is the interest-free part which the state provided.
Speaking about the conditions attached to the loans, he said that flats purchased with this loan may not be rented out until the entire loan has been repaid and that the buyer must be registered at that address.
The Minister said that a sum of over RSD 450 million will be set aside from the 2009 budget for subsidised housing loans, adding that these funds will be provided by the Ministry of Economy and Regional Development.
He said that land for building flats will be obtained by transferring the IMT and IMR factories to Prva Iskra in Baric.
Dinkic said that the number of state officials on both national and local levels will be reduced from January 1. He confirmed that personnel in the public sector will be reduced by nearly 14,000 employees.
He said that the government will prepare draft laws which will regulate personnel reduction in public administration, adding that these regulations will be passed by Parliament in October and enter into force immediately.
He explained that after the law is passed, the ministries will get orders from the government to make a revision of jobs in accordance with amendments to the law on state officials.
He said that the ministries will have to revoke unnecessary procedures, adding that a special system of employee assessment will also be introduced and that employees who receive the minimum mark according to this assessment will be removed from their positions.
Following the last meeting with the IMF, the Serbian government announced reductions in state administration in order to decrease public spending and ease the economy, Dinkic said.
Minister of Environment and Spatial Planning Oliver Dulic noted that the government is currently drafting a programme for providing subsidised loans for the construction of flats, which will facilitate the construction of more than 10,000 flats.
He voiced his belief that municipalities will provide cheap land and speed up the process of acquiring any necessary building licences.
Apart from reductions in the number of people employed in the state administration, the educational requirements of employees must also be changed, he said, stressing that the state administration needs young and educated people.
Public administration reforms will last for several years and certainly yield positive results, he concluded.
He noted that at the session on September 17 the government will adopt the new programme of housing loan subsidies, adding that the loans will be approved only for purchasing new flats, flats under construction and for building new houses.
The Deputy Prime Minister said that citizens will have to provide a 5% down payment, adding that the state will provide interest-free loans for 20% of the price while banks will grant loans for the remaining 75%.
The repayment period is 30 years at the most. In the first three and the last five years the repayment is interest-free because the state will fully subsidise the interest rate, he explained.
Dinkic said that the monthly income of the borrower or the borrower’s household must be double the monthly instalment, specifying that those with a total monthly income of up to RSD 120,000 may apply for the loan.
He said that the housing loans will be interest free for all applicants until October 31, 2012. He added that starting from November 2012, loan beneficiaries will start paying off the interest, ranging from 4.9% to 5.9%, over a period of 22 years. He explained that during the final five years the beneficiaries will be repaying the last 20% of the loan which is the interest-free part which the state provided.
Speaking about the conditions attached to the loans, he said that flats purchased with this loan may not be rented out until the entire loan has been repaid and that the buyer must be registered at that address.
The Minister said that a sum of over RSD 450 million will be set aside from the 2009 budget for subsidised housing loans, adding that these funds will be provided by the Ministry of Economy and Regional Development.
He said that land for building flats will be obtained by transferring the IMT and IMR factories to Prva Iskra in Baric.
Dinkic said that the number of state officials on both national and local levels will be reduced from January 1. He confirmed that personnel in the public sector will be reduced by nearly 14,000 employees.
He said that the government will prepare draft laws which will regulate personnel reduction in public administration, adding that these regulations will be passed by Parliament in October and enter into force immediately.
He explained that after the law is passed, the ministries will get orders from the government to make a revision of jobs in accordance with amendments to the law on state officials.
He said that the ministries will have to revoke unnecessary procedures, adding that a special system of employee assessment will also be introduced and that employees who receive the minimum mark according to this assessment will be removed from their positions.
Following the last meeting with the IMF, the Serbian government announced reductions in state administration in order to decrease public spending and ease the economy, Dinkic said.
Minister of Environment and Spatial Planning Oliver Dulic noted that the government is currently drafting a programme for providing subsidised loans for the construction of flats, which will facilitate the construction of more than 10,000 flats.
He voiced his belief that municipalities will provide cheap land and speed up the process of acquiring any necessary building licences.
Apart from reductions in the number of people employed in the state administration, the educational requirements of employees must also be changed, he said, stressing that the state administration needs young and educated people.
Public administration reforms will last for several years and certainly yield positive results, he concluded.
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