The NBS Executive Board has passed a Decree on Temporary Measures for Banks to Facilitate Access to Financing for Natural Persons, the bank announces.
The Decree prescribes three sets of temporary measures that should facilitate access to mortgages for citizens, and thus provide support to the real sector, more specifically the construction industry, through faster turnover of assets, the possibility of extension of mortgage repayment period for maximum five years and temporary relaxation of the approval procedure for short-term mortgages (indexed in dinars) up to a certain amount.
The first measure relates to the approval of new mortgages for newly built apartments. Easier access to mortgages will also support the construction industry as the driving force behind the economic activity, by expediting the turnover of financial assets and sustaining growth in that branch of the economy.
The newly adopted preferential treatment envisages that, in addition to fully completed apartments, mortgages may also be approved for:
– residential real estate – buildings in construction, regardless of the degree of completion, in case of project financing by a bank, with the Building Directorate of Serbia as the holder of the construction permit or in case they are part of the measures of government support to specific categories of natural persons;
– buildings under construction, that are completed at least 60%, in case of project financing by another bank or project of a legal entity investor.
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At the same time, there are clearly defined criteria that the developer and the building under construction must meet in order for these measures to be applied. To ensure funding for this type of lending, banks will be allowed to use a part of assets in the form of capital, i.e. certain capital buffers they normally set aside.
This Decree provides further support to previous first home buying programmes, by enabling preferential treatment also for newly approved loans in this category.
The second measure aims to ease terms of repayment of mortgages for citizens, particularly those that may potentially see reduced or uncertain income in the period ahead, as well as those wishing to extend the initially set repayment deadline.
Also, a regulatory solution was introduced allowing banks to grant a loan of up to RSD 90,000 to a natural person whose wage or pension is not paid into the personal account opened with that bank, with the maturity of up to two years.
These measures will be valid until the end of 2021.
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