Skopje, 7th February 2013 (MIA) – Government has improved the requirements for the “Buy a House, Buy a Flat”, increasing the subsidy from 50% to 75% for building a new house. Under the new amendments,

the subsidy will reach up to EUR 15,000, and the objective is to additionally stimulate the sale of houses.

The Government, as Vice Prime Minister and Minister of Finance, Zoran Stavreski, said, adopted the amendments at the last governmental session, pertaining to housing credits approved.

– According to the new amendments introduced to the “50/50 installment” model, the Government will subsidize 75%, rather than the former 50% of the monthly annuity. Thereby, subsidy for a credit for building or buying a new house in the amount up to EUR 50,000 will be EUR 15,030, whereby the installment will be EUR 330, EUR 247 out of which will be paid by the Government in the first three years, and the applicants will pay EUR 83. The amount is similar in the fourth and the fifth year, Stavreski said.

As for the “50% participation” model, 50% support was provided, while now such support will be 75% as in the other model, whereby subsidy for a credit of EUR 50,000 will be in the amount of EUR 9,375.

– We believe such amendments will provide for a greater usage of funds under this Project for building a house, which will also contribute to development of custom-housing settlements being recently promoted by the municipalities, which are novelty in Macedonia, Stavreski pointed out.

Second possibility under the amendments is to build a new house on the already existing old or smaller one, which, as the Minister said, has been requested by the citizens. – We have received hundreds of e-mails and phone calls related to this issue and, since it a need expressed by the citizens, we have decided to accept it. From now on, this possibility can be also used in a situation where many families live in a single space, who can use the credit to build a new house or to tear down one part of the house and to build larger one, Stavreski explained.

Amendments also provide for the government subsidy not to be repaid in case of early repayment of the credit. Such possibility is given after the 10th year of credit repayment. – Should the citizen use a subsidy and should, after living in the house or the flat for 10 year, conditions be created for him/her to repay the credit, there will be no need to repay the funds provided by the Government, Minister of Finance said, adding that this provision applies to both the old and the newly approved credits, after the amendments come into force.

Vice Prime Minister said that these were three significant amendments, which were mainly made upon request by the citizens. We have provided, the Minister underlined, for the Law to be amended as regards the houses and to be adjusted to the needs of the citizens, especially since additional costs are incurred with respect to land provision, etc.

Stavreski pointed out that there would be no amendments pertaining to the criteria for obtaining a housing credit, in particular the amount of monthly earnings and the price of square meter. EUR 900 per square meter remains to be a requirement since, as the Minister said, the Project is intended for persons earning certain income, who are not socially vulnerable, however, do not have sufficient income to resolve the housing issue.

It is a multiannual project and, as the Minister explained, the amendments will set a framework under which a program will be adopted and published at the beginning of the year, while the Ministry of Finance will review the submitted applications each 45 days and will decide thereupon so as for the citizens not to be kept waiting for a whole year.

“Buy a House, Buy a Flat” Project started to be realized in January last year, and 130 and so subsidized housing credits have been approved so far.