As a reminder, the prime rate for Prima Casa loans is floating. It is calculated as a weighted average of interest rates on new deposits in Moldovan lei with maturity from 6 to 12 months. It is updated every six months. Accordingly, the index used to calculate the interest rate on mortgage loans has increased by 2.12 percentage points since July 1 this year, from 3.70% to 5.82%. The fixed margin set by banks is also added to it.
In this regard, loan holders posted posts in social networks with calculations of monthly installments, proving that the increase in interest rates against the background of inflation significantly reduces their solvency and economic stability. And earlier they demanded from the government urgent measures in connection with the sharp increase in interest rates on loans.
In the petition, Prima Casa participants point out that the increase in payments will be an unbearable burden for young families. The signatories demand that the authorities partially compensate the monthly payments (by 30-50%) for a year, set a temporary maximum interest rate or switch to a fixed rate for a period of 12-24 months. Also, ️ revising the methodology for calculating floating rates so that their growth would be smoother and more predictable.
Minister of Economic Development and Digitalization Doina Nistor explained the increase in the prime rate by a predetermined formula, and noted that there are no support measures for program participants.
At the same time, the Economy Ministry is studying the impact of the new prime rate on the Prima Casa program, predicting a decrease in interest rates in the future, amid a downward trend in inflation. The ministry said that this is a temporary increase in the rate, which is caused by the tightening of the National Bank’s monetary policy in response to inflationary pressure.
The state program Prima Casă was launched in Moldova in 2018. More than seven thousand people purchased real estate under this program. In 2024, the Prima Casa plus program was launched. More than 3 thousand applicants obtained mortgage loans under this program.
