The share of financing of housing construction and housing fund renewal by corporate entities should increase next year. The Finance Ministry submitted for interdepartmental review a draft revision to the Home Savings Act, which should improve access to housing in particular for young families. According to the ministry's proposal, citizens of other European Union (EU) countries who are living in Slovakia would also be able to join the home savings scheme. However, they can use the money from home savings only to finance housing on the territory of the Slovak Republic. The revision enables also corporate entities to join the home savings scheme. The Finance Ministry suggests the revision to take effect as of January 1, 2008.
The Finance Ministry proposed to extend a group of receivers of home saving bonus to include also citizens from other EU countries, who are income tax payers in Slovakia and also corporate entities -- associations of home owners. Possibilities for use of home saving loans should also be extended. Extension of a group of citizens receiving state bonus should have a SKK 150 million impact on the state budget annually.
The Finance Ministry further informed that housing construction prevailed in use of money from home savings until 2001, while the importance of renewal of housing fund grew after 2001 and its share currently amounts to 75 percent. The ministry stated that the home savings system contributed to revitalization of housing construction development. Its establishing and subsequent launching of loan provision in 1995 resulted in increase in the number of completed apartments.
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