ZAGREB ZAGREB, July 16 (Hina) - A Croatian programme for the low-income housing construction has recently been presented in Zagreb. According to the presented system, the Government, local authorities, banks and citizens will
participate in the financing of the construction of such flats or houses.
ZAGREB, July 16 (Hina) - A Croatian programme for the low-income
housing construction has recently been presented in Zagreb.
According to the presented system, the Government, local
authorities, banks and citizens will participate in the financing
of the construction of such flats or houses.#L#
An individual, namely the future owner of the flat, will give
financial means for the 20 percent of the final price of such
housing unit.#L#
The purpose of the programme is to enable Croatian citizens with
moderate or lower income to purchase a flat, thanks to a 30-year-
long loan with the eight percent interest rate and the one-year
grace period, said Minister of Public Works, Reconstruction and
Construction, Radimir Cacic, presenting the programme.
Under the programme, which will be carried out at two stages, 3,400
flats should be built annually.
During the first stage, only flats that will subsequently be
privately-owned, should be built, whereas the second stage
provides for the construction of flats which will be owned by units
of local self-government and can be rented.
Cacic expounded that the Government would participate in the
construction with ensuring its 300 German marks per square metre of
the flat. Local authorities are to give construction sites and
public utilities, and this will make up about 400 German marks per
square metre of the flat, the share of the citizen is at least 20
percent of the flat's price while the rest of 660 German marks per
square metre for the coverage of other costs would be got from
favourable commercial loans granted by banks.
The means will be paid back to town or municipal authorities after
15 years through the payment of monthly instalments which will come
to 350 German marks for a 50-square-metre flat.
The ceiling of the price for such flat, which the Government
guarantees to each town or municipality is 1,700 German marks per
square metre, Cacic added.
The minister asserted the programme could immediately be launched
and banks, showing great interest in it, were also ready for this
business.
He stressed this concept was functioning in all European
countries.
Asked about possible commencement of the project in Croatia, Cacic
answered that "cities, towns and municipalities give their part by
ensuring construction sites, infrastructure and public utilities,
and if they are ready to ensure them, the programme can start
immediately."
He estimated that the project could employ about 10,000 workers.
In order to make the programme clearer, Minister Cacic cited an
example of a 50-square-metre-large flat of this kind that will cost
85,000 German marks. The citizen-future owner will pay DM 17,000
for their share of 20 percent as a deposit, the state should ensure
DM 15,000, local authorities DM 20,000, and banks should ensure DM
33,000.
(hina) ms