OREANDA-NEWS. November 22, 2010. This year Bank SNORAS has credited 54 communities of residents of multi-apartment houses, which borrowed money for housing renovation, and the total sum designated for such projects exceeded LTL 15.1 million. Most projects of renovating multi-apartment houses have been financed in Vilnius and Panevezys – 18 and 15 respectively. In addition, the communities in Kaunas, Klaipeda, Siauliai, Alytus, Taurage, Mazeikiai and Marijampole have also used Bank SNORAS loans this year. The average sum of one project exceeds LTL 281 thousand, reported the press-centre of Bank SNORAS.

“The reviving, while implementing projects of renovating multi-apartment houses, should be associated with the favourable situation in the market – the construction work tariffs and prices of building materials, in comparison to the pre-crisis period, have decreased considerably. Moreover, renovation is also stimulated by financing conditions – the state support as well as the loan amount provided by the bank up to 95 per cent of the project value. It is interesting that Panevezys region participates in the projects of renovating multi-apartment houses especially actively – according to the issued sums it outpaces Kaunas and Klaipeda by more than a double amount,” says Zorzas Sarafanovicius, the deputy chairman of AB Bank SNORAS Board, the director of Retail Business Division.

According to Z. Sarafanovicius, attention should still be paid to the fact that there are thousands of multi-apartment houses subject to renovation in Lithuania; therefore, in comparison to the number of the financed projects, it should be said that the communities of residents of multi-apartment houses participate in renovation projects not very actively.

The loan amount may reach up to 95 per cent of the project for Bank SNORAS loans issued for housing renovation projects of communities in multi-apartment residential houses with the guarantee of the guarantee fund of UAB „Investiciju ir verslo garantijos“ (INVEGA). With INVEGA guarantee, which is equated to the state guarantee, the initial deposit sum applied to the loans of Bank SNORAS renovation projects comprises hardly 5 per cent of the entire project value.

Bank SNORAS provides loans for such projects in Litas and Euros. With INVEGA company guarantee, while crediting communities, SNORAS applies the bank margin from 2 up to 3 per cent in Litas and VILIBOR floating interest base (selectively 6 or 12 months). The maximum term of loan redemption for communities reaches up to 10 years, the loan use term – a year and a half.

The state compensates for the heating expenses for the low-income people if they comprise more than 20 per cent of the family income (according to the data of Ministry of Labour and Social Security, there are about 11 per cent of such residents in Lithuania). The funds designated for housing renovation are also included in the compensated expenses; therefore, low-income families can also participate in housing renovation projects because no additional payments will be made for it. The state intends to compensate for them up to 100 per cent of the initial deposit (but not more than 10 per cent of the sum of the investments) and also to completely pay the deposits of the loan insurance and repayable loan.