Three Novi Sad banks sign housing loan agreements

Serbian Minister of Finance Mladjan Dinkic attended today the signing of agreements between Panonska, Novosadska and Metals banks, and the National Corporation for Housing Loan Insurance, which will enable these three banks to start approving housing loans as of the New Year.

Dinkic said that loans will have 20-year repayment period, with an annual interest rate lower than 9 percent for a 20 percent down payment, and with a 20 percent deposit the rate would be lower than 7.5 percent.

The Minister explained that the National Corporation will provide insurance for loans of up to €200,000, and guarantees for 75 percent of the potential bank loss. He added that each bank will set the maximum loan amount.

Dinkic said that this model of crediting purchase of apartments is expected to bring about a real boom in housing construction, because it is estimated that around 60,000 households in Serbia can afford housing loans. He said that loans for developers will be insured in the second phase.

Directors of Novosadska and Panonska banks, Vladimir Medan and Srdjan Petrovic, said that these banks have already been approving housing loans, but that agreements with the National Corporation will help them offer more favourable loans, with reduced risks.

Director of Metals Bank Ananije Pavicevic said that the bank will secure additional funds for housing loans, instead of the planned €5 million.

Raiffeisen Bank and HVB bank have also signed housing loan agreements with the National Corporation.