No more favorable mortgage loans – state to give up subventions

Citizens will not be able to count on favorable subsidized mortgage loans in the following period, at least not until the prices in the real estate market are higher than they should be. In other words, banking commercial loans are now the only option for procurement of housing space.

- Once the prices of properties are lowered, the state will be subsidizing mortgage loans again. We expect the prices of apartments to start dropping soon. We do not want to subsidized procurement of apartments at these prices. We want those who deal with civil engineering and those who sell real estates to bring their prices in accord with the real market circumstances – the Minister of Economy and Regional Development, Mlađan Dinkić, said yesterday (April 13, 2009).

As Dinkić explained, mortgage loans in March grew by 18% against the same period last year, while the agricultural loans registered growth of only 4%.

By the way, although the citizens have been submitting loan applications, no loan has been approved since the beginning of the year.