Petr Gandalovic to curb housing loans program

Young people planning to take out state loans towards the purchase of a home may soon find themselves up against more obstacles. The new Minister for Regional Development, Petr Gandalovic (a Civic Democrat), has announced that he intends to gradually halt a program introduced by the previous Social Democratic government. The program in question allows couples under 36 to borrow as much as 300 000 crowns towards the purchase of a home, and an additional 150 000 for renovations. A two percent annual interest rate is charged, and loans may be paid over the course of twenty years. The program began in December 2004 and thus far some 9000 applicants have been approved for the state loans. Mr. Gandalovic says that the country can not afford such a program, and that the expected rent deregulation in 2007 will help create a more favourable housing market for young people.