Bank Leumi Romania wants to participate in the "First Home" program

Ana Săbiescu

The domestic branch of Bank Leumi, is another bank that submitted a tender for participating in the "First Home" program, and is now waiting for the authorities" response, said Mr. Laurenţiu Mitrache, executive chairman of Bank Leumi Romania.

"Even though these loans are guaranteed by the government, the interest rates for loans granted through this program can only be 0.5 or 1% lower, but it is still the market that sets the prices, because we are in a market economy", said the executive chairman of the bank.

The interest rates charged by banks for loans granted under the "First home" program were the object of heated arguments over the last weeks, as the Government wanted them to be as low as possible, for the program to be efficient.

Laurenţiu Mitrache also said: "We want to get involved in this program and we will do everything that is possible to facilitate loan access, thus helping the community and the economy at the same time". However, he added that "this program won"t perform miracles".

The beneficiaries of this program - who must meet the requirements of not owning a home and not having taken out a mortgage loan - will be eligible for a government guarantee of EUR 60,000 which could cover the purchase of their first home.

Over 20 banks have submitted complete offers to participate in this program, including the interest rates and the commissions that they intend to charge.

Bank Leumi Romania"s net profit increased 67% in Q1 2009 YOY, to 3.96 million lei, whereas the bank"s assets increased 21.7%.