LAW OF THE REPUBLIC OF MOLDOVA

of December 21, 2017 No. 293

About some measures for implementation of the state program "First house"

The parliament adopts this organic law.

Article 1. Law purpose

The purpose of this law is creation of the legal base for implementation of the state program "First house" (further – the Program) and simplification of access for physical persons to acquisition of housing by the conclusion of agreements on the mortgage loans which are partially guaranteed by the state.

Article 2. Subject of the Program

(1) the Subject of the Program is housing in the form of apartments or individual apartment houses located in the territory of the Republic of Moldova.

(2) Housing specified in part (1), it shall be complete and put in operation about day of the request of the beneficiary of the Program for mortgage loan.

Article 3. Subjects of the Program

Subjects of the Program are:

a) the beneficiary – the physical person answering to the selection criteria provided by the Program and obtaining mortgage loan within the Program;

b) the creditor (financing bank) – the bank which obtained the license of National Bank of Moldova according to provisions of the current legislation and allowed to participation in the Program;

c) the guarantor – the Government on behalf of the Ministry of Finance which allocates public organization "Organization for Development of Entrepreneurship" (further – PU ORP) the right to issue guarantees from name and at the expense of the state for benefit of the creditor within the limits which are annually approved on these purposes by Parliament.

Article 4. Selection criteria of beneficiaries of the Program

(1) For receipt of mortgage loan within the Program the physical person shall correspond to at the same time following conditions:

a) not to be more senior than 50 years at the time of the request for mortgage loan;

b) be the citizen of the Republic of Moldova employed in the Republic of Moldova;

c) gain income allowing to pay mortgage loan on which monthly fee, the interest rate and commission on guarantee shall not exceed 50 percent of total net income of the beneficiary and/or his families, and also the relative of the first degree of the beneficiary and/or the spouse/spouse of that;

d) the area of housing acquired within the Program shall exceed the area of housing which has as exclusive property or together with other family members. To the corresponding established conditions also person having as exclusive property or together with other family members housing, irrespective of its area, in the village (commune), received as a result of inheritance or donation is considered;

e) the spouse shall / the spouse shall have as exclusive property or together with other family members, except the beneficiary, housing exceeding the area of housing acquired within the Program. To the corresponding established conditions also person whose spouses/spouse have as exclusive property or together with other family members housing, irrespective of its area, in the village (commune), received as a result of inheritance or donation is considered;

f) to the beneficiary or the spouse/spouse of that not to have housing acquired by means of the Program.

(2) In sense of this Article the spouses/spouse of the beneficiary and their child before achievement at the time of the request for the credit of 18 years are considered as it as family members. The reference, confirmatory that the physical person answers provided in Items d) and e) parts (1) to criteria, it is issued by the Agency of the state services.

Article 5. Selection criteria of the financing banks

(1) Banks take part in the Program on voluntary basis.

(2) Any bank of the Republic of Moldova which obtained the license allowed to participation in the Program can grant mortgage loans to beneficiaries which answer the selection criteria provided by the Program.

(3) Criteria of the admission to participation in the Program are established by the Government.

(4) Banks take part in the Program after the conclusion them agreements on cooperation with PU ORP and the Ministry of Finance.

Article 6. Program conditions

(1) the Physical person answering to the selection criteria provided in Article 4, has the right to address for provision of mortgage loan within the Program provided that:

a) the purchase price of housing does not exceed one million lei;

b) the size of initial own contribution constitutes at least 5 percent of purchase price of housing;

c) the term of return of mortgage loan, except for its early payment, constitutes up to 25 years, but does not exceed the standard retirement age established by the legislation;

d) the mortgage loan is issued in national currency.

(2) In departure from provisions of the Law on credit agreements with consumers No. 202/2013 the maximum annual interest rate is expressed by the amount of the following components:

a) indicative rate for the Program published by National Bank of Moldova (calculated as weighted average interest rate on again attracted domestic currency deposits from 6 to 12 months);

b) the maximum margin to 3 percent which is annually specified by the Government;

c) commissions on guarantee to 0,5 of annual interest rate of remaining balance of the state guarantee established by the Ministry of Finance. The commission on guarantee is reviewed at least every two years by the Ministry of Finance based on experiment of default on the Program credits. The commission on guarantee is estimated monthly in the creditor (the financing bank) from the first day of issuance of credit to the beneficiary of the Program from remaining balance of the state guarantee and before complete loan repayment, and in case of execution of the state guarantee - before sale of mortgage housing.

(3) the Maximum annual interest rate is floating and PU ORP each half a year on its official web page is published. The interest rate applied to the period from July 1 to December 31 is based on Moldova published by National Bank to indicative rate for May, and the interest rate applied to the period from January 1 to June 30 – on Moldova published by National Bank to indicative rate for November of prior year. For granted loans increase in interest rate cannot exceed 4 percent points of times in 6 months, and within 12 months in a row cannot exceed 6 percent points. In departure from part provisions (6) article 39 of the Law on mortgage No. 142/2008 these rates are brought to the attention of the beneficiary of the credit in writing or electronically the financing bank within 10 calendar days before change of the maximum annual interest rate. Change of the maximum annual interest rate is obligatory for banks only in case of decrease in indicative rate.

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info