Prima Casă Plus: un program social, bancar, imobiliar sau electoral? Analiza oportunităților și riscurilor programului
Prima Casă Plus: a social, banking, real estate or electoral program? Analysis of program opportunities and risks

Author(s): Stas Madan
Subject(s): Economic policy, Socio-Economic Research
Published by: EXPERT-GRUP Centrul Analitic Independent
Keywords: housing prices;
Summary/Abstract: Reliable and affordable housing affordability, especially for young families, is a public policy concern for many states. The Republic of Moldova set out to achieve this goal in 2018 with the launch of the "Prima Casa" state program, with the aim of facilitating the access of young families to housing by guaranteeing mortgage loans requested from banks. After a period in which it managed to significantly influence both the mortgage market and the real estate market as a whole, in the last two years the "Prima Casa" program entered a phase of stagnation. The given situation occurred due to the high inflation of the period 2022-2023 which resulted in the increase of nominal interest rates, but also of the increasing evolution of real estate prices. With the return of inflation within reasonable limits and the cheapening of financing costs, the authorities came up with a bill, conventionally called "Prima Casa Plus", which aims to revive the program. This Analytical Note aims to analyze what the "Prima Casă" program has meant so far, what the project's provisions are and to highlight the main benefits and risks that arise for the interested parties.

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