Guarantor free mortgage credits

The Romanian mortgage credit market has a tremendous potential, the specialists of the European Bank for Reconstruction and Development (EBRD) say. At the same time, the economy rebound materialised in an increase in salaries and in an inflation decline along with the matching interest cut for credits will result in substantially more applications for loans aimed at buying or decorating a home. These are but a few of the results of the market surveys that prompted EBRD to grant Banca Comerciala Romana (Romanian Commercial Bank – BCR), the largest Romanian bank, a line of credit worth 50 million euros and due in 11 years to be used for housing loans. “The potential of the Romanian real estate market is huge. The 50 million euro may seem a large amount today, yet it is but a small contribution to what is expected in this field. We conducted a survey on the markets to join the European Union, including Romania, and came to the conclusion that it would take billions of euros to actually develop this market segment. Every applicant state needs long-term credits,” Kurt Geiger, EBRD director says. BCR now offers guarantor free mortgage credits under this agreement, but the beneficiaries have to come up with 25% of the amount they seek to borrow. ZF