State to ask banks for 300m-euro loan

The Government will take out a loan of up to 300 million euros from the domestic market as soon as possible, in order to be able to provide the money necessary to start the mandatory home insurance project, officials of the Ministry of the Interior said on Wednesday. “The loan could be taken out for a 15 years, with a 5-year grace period,” said Radu Mircea Popescu, advisor of the Minister of Administration and Interior, in charge of the mandatory home insurance law draft. Although, following initial discussions, the loan was to be taken out from foreign markets, the Ministry of Finance has come up with a cheaper way to receive funding, from the domestic market, Popescu said. “As results from the talks we have had with Government representatives, it is possible for the credit to be taken out from a syndicate of banks from Romania,” he specified. The maximum limit of the credit could be of 300 million euros, and its size will be established in later stages, after the mandatory home insurance legislation has been passed.