Suggests reducing interest rate on public funds for POS repayment from three to two percent annually.

The Government has submitted its final proposal for amendments and additions to the law on social housing (POS) to the Parliament, which suggests reducing the interest rate on public funds for POS repayment from three to two percent annually and banning the renting or selling of POS flats within a ten-year period. Minister of Construction and Physical Planning Predrag Štromar said that this is a concrete demographic measure aimed at ensuring young people have somewhere to live and stay in Croatia.

Suggests reducing the interest rate on public funds for POS repayment from three to two percent annually.

The aim of the proposed amendments is, as stated, not only to enable construction, but also to purchase flats for the state and public officials and employees in deficit professions and prevent the misuse of public funds for the use of flats. To be more specific, in relation to the draft law in its first parliamentary reading, additional provisions were added that concern preventing the misuse of public funds for the use of flats by introducing a ban on renting or selling flats purchased prior to ten years from the date when the POS Act comes into force. This will be defined by a property registry entry.

This will be defined by a purchase-sale agreement, explained Štromar, so that flats are actually used for the purpose for which they were built and for which the state pays out public funds.

The change also applies to the possibility of purchasing flats for resettling war veterans by the Ministry of Croatian Veterans and local government units, carried out based on the Law on Croatian veterans of the Homeland War and members of their families. Štromar announced that so far, 5,300 subsidised loans have been approved, and 8,276 POS flats have been built, or more than 13,500 homes. He concluded by saying that by the end of 2020, around 20,000 families will have their own home.

source: poslovni.hr

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