“A proposal to reduce or cancel state support for building savings is at an advanced stage of coalition negotiations. State support for existing contracts could be halved, i.e. a maximum of a thousand crowns per year. For new contracts, support could be completely cancelled,” said Pro. CNN Prima NewsThis was brought to the information on Tuesday, the spokesman of the Ministry of Finance Tomáš Weiss.
As part of savings in the state budget, this measure was already discussed last summer. However, according to Sarwar, the alliance has now agreed to the move. Abolishing building savings support should save up to four billion kroner in the budget.
However, the resort, along with other authorities, is solving the last hurdles. For example, the eviction of customers and the problems of providing loans, especially for those with low incomes, are opposed by representatives of building societies.
It doesn’t help anything. Building savings banks don’t like Stanjur’s plan to cut state subsidies
Building storage has a long tradition in the Czech Republic. There are five building societies operating in the Czech market. Last year, about 572,000 customers signed a new contract with them, and they provided loans for 56.7 billion crowns. In total, more than three million Czechs have a building savings account.
On the contrary, the planned move has been welcomed by the government’s National Economic Council (NERV) and other economists, who point out that the building savings agency is already outdated and not serving its purpose.
“Support for building savings in the Czech Republic has a tradition of almost thirty years, but it arose in a completely different situation of no savings, no mortgages and a general lack of long-term deposits. Over time, this product has become the ‘only’ state-subsidized ordinary savings for some, however, it is for all It’s also funded out of taxpayers’ pockets,” says NERV.
Mortgage activity picked up in February as home loans became cheaper