The State Housing Development Fund (SFRB) plans to provide loans for the building of rental houses next year to municipalities with an annual budget not exceeding SKK 5 million, director of the Fund Zoltan Kasa announced. Under normal circumstances, these municipalities are not eligible to draw bank loans. Successful applicants will receive a state subsidy of up to 50 percent of their costs and another 50 percent in the form of a commercial bank loan, with up to 6 percent p.a. of interest subsidized by the Ministry of Construction and Regional Development (MVRR). Because it does not have the resources for this program, the ministry is not providing this form of financial support this year, stated its spokesman Martin Baranovic.

Next year, however, the ministry will have SKK 1.095 billion for housing construction support. SKK 845 million should be used for building rental houses, SKK 140 million for land preparation and technical support, SKK 100 million for reparations of houses, and SKK 10 million for bank guarantees.

Mr. Kasa is surprised that the support for mortgage financing in next year‘s state budget draft is 74.2 percent higher than this year, an increase of SKK 362.2. Mr. Kasa supposes SFRB is still the main pillar for housing construction for young people and that the requirements of commercial banks are different from those of SFRB for an applicant to receive support.

According to the state budget draft for 2004, the funding of SFRB should reach SKK 3.632 billion, with SKK 2.419 billion coming from the state budget and SKK 1.208 billion from the fund’s own resources.

(EUR 1 = SKK 42.134 on August 19)