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Govt announces new subsidized home loan program

The government plans to introduce a new subsidized forint-denominated loan program in 2012 for the purchase or construction of new homes or purchase or renovation of existing homes, minister of National Economy, György Matolcsy announced on Wednesday.

Matolcsy said that the program will also provide subsidized loans for borrowers who move into smaller homes following conversion of foreign-currency-denominated loans.

The national economy minister said that the government will allocate HUF 1.3bn for the new program in 2012, adding that he expects 3,000-5,000 families to take advantage of the program next year.

The program must receive European Union approval in order to come into effect.