Two Opposition parties criticise subsidised housing loans

NEWS 15.12.202013:44
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MP Katarina Peovic of the left-wing RF party commented on Tuesday on amendments to the Law on Housing Loan Subsidies, saying that subsidised housing loans, intended for young families, lead to a rise in the prices of flats and favour the construction sector, real estate dealers, and banks.

“Finance Minister Zdravko Maric would probably admit himself that those loans increase prices of flats and that subsidies should be defined in a different way,” Peovic said.

She said that an analysis by the central bank showed that subsidised housing loans made prices of flats several times higher than the amount of the average subsidy.

The amendments should not have been sent to parliament for discussion under fast-track procedure and remarks given during the public consultation should have been taken into account so as to announce, much more in advance, dates when such loans can be applied for or make them available throughout the year so that applicants are given more than just a short period of time during which they have to find a flat and agree to a high price as otherwise they could lose the subsidy, she said.

Peovic said that her party would submit an amendment to make it possible to take out subsidised housing loans throughout the year or announce the period when housing loan subsidies can be applied for a year in advance.

She also noted that one should abolish the 3% tax rate on one’s first property and called for encouraging community housing and government-subsidised housing construction in such a way to enable long-term or even life-long apartment rental. The construction of new housing blocks should be accompanied with the construction of adequate infrastructure, she noted.

At a separate news conference, Marija Selak-Raspudic of the populist conservative Most party, too, criticised the Law on Housing Loan Subsidies, saying it ensured a profit to banks and flat sellers.

Peovic to continue as MP outside parliamentary club

Peovic also said that after the break-up of the coalition between the Workers’ Front and the We Can! party, she would continue working as the sole MP of her party but that her party would use all available means to fight for the disenfranchised majority, which, she said, was done in a better way through parliamentary committees.

Peovic said that it was too early to speak of the RF’s support for the possible candidacy of the Mozemo! leader Tomislav Tomasevic for Zagreb Mayor, adding that since it was no longer part of the green-left parliamentary bloc, the RF was yet to decide how to participate in local elections in Zagreb, set for May 2021.