Targeted subsidies in housing construction are being introduced in Belarus. This is stipulated by Decree No. 240 "On State Support for Citizens in the Construction (Reconstruction) of Residential Premises," which comes into force on August 6, according to BELTA.
State subsidies will be provided to cover part of the interest on housing construction loans obtained by citizens from any commercial bank, and for large and young families and orphans – also to cover part of the principal loan amount for such loans.
Recipients of subsidies will be all citizens entitled to state support in accordance with Decree of the President of the Republic of Belarus No. 13 of January 6, 2012.
Additionally, the decree provides for the right to receive targeted subsidies for combat veterans who served in the territory of other states.
At the same time, state support in the form of preferential loans and subsidies will operate in parallel, maintaining the principle of one-time receipt.
The mechanism for providing state subsidies has been developed taking into account the maximum preservation of the principles of the current system of state support for housing construction: the amount of state support will be calculated based on the number of family members, normalized residential premises sizes, and the maximum construction cost norm; the conditions for providing such state support will be the order of receipt and the classification of citizens as low-income.
According to the decree, the subsidy amount for paying part of the interest for families with three minor children will be equal to the refinancing rate plus 2%, for families with four or more minor children – the refinancing rate plus 3%, for families with three or more children under 23 years of age, orphans and children left without parental care – the refinancing rate plus 2%. For families with four or more children, the principal loan will be repaid by 100%, for three cohabiting children under 23 years of age – by 95%, for orphans – by 35%, for young families with the birth of one and two children – by 10% and 20% respectively.
A total of approximately Br135 million is currently provided for targeted subsidies in housing construction. Belarusbank and Belagroprombank will be the first to implement Decree No. 240. It is planned that commercial banks will join them later.