First eight subsidized mortgage loans granted - banks received 600 loan applications

The Minister of Economy of Serbia, Mlađan Dinkić, said today (October 22, 2009) that 600 applications for subsidized mortgage loans had been submitted to the banks over the previous three weeks, and that about 70 applications had been processed to the date.

- The plan is that about 3,000 loans be approved in 2009 and 2010 - Dinkić said on the occasion of signing of the first eight contracts with the users of subsidized mortgage loans for newly built apartments.

He pointed out that those loans were interest-free during the first three and the last five years of repayment out of total of 30 years because the state would subsidize interest rate in those years.

- After 3,000 loans are granted, we will continue approving subsidized mortgage loans, but they will not be interest-free any more - said Dinkić.

Dinkić said that local self-governments must accelerate issuing of building permits for new apartments, so that the number of apartments could be increased.

He estimated that those were not only the most favorable loans in the market of Serbia, but also in the market of Europe.

As he explained, the loans are currently being granted by 19 banks, interest rates range between 4.9 and 5.65%, and their application starts in October 2012.

The contracts were signed in the presence of the representatives of banks and the National Mortgage Insurance Corporation.

Realization of the subsidized mortgage loans programme started on October 1st.