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Building and loan societies can simplify some procedures of financing removal of flood damages
Press center » Press releases » Building and loan societies can simplify some procedures of financing removal of flood damages
The Czech Building and Loans Societies Association and its members reacted to the situation after the floods in the Czech Republic very quickly and with great flexibility. Immediately after the disastrous August floods, building and loan societies took steps to speed up the process of providing loans and to make them more accessible to clients from flooded areas. As a humanitarian gesture, they granted the total of CZK 13 million to various flood accounts. Further, they decided to prefer clients asking for loans to be used for reconstruction of houses and apartments damaged or destroyed by floods, when considering loan applications.
Another measure was the allocation of CZK 4.25 billion for bridging loans and an announcement of extraordinary reduction on interest loans with bridging loans, which are now provided with annual rates starting at 3.5%. To simplify the administrative related to proving the purpose of spending finance from provided loans, building and loan societies initiated clarification and unification of interpretation regarding the process of considering the purpose. The Ministry of Finance of the Czech Republic provided its opinion on the respective proposals of building and loan societies in its letter sent to the Association.
Building and loan societies will be transferring finance directly to current accounts of clients as soon as possible upon drawing any respective loans. Clients will be allowed to prove the use of such finance based on law additionally by submitting tax documents up to the amount of the provided loan. Finance from the loan related to saving with a building society can be also used for the purchase of drying machinery and similar aggregates in adequate amounts. Similarly, the finance can be used to pay demolition and removal works according to commonly applied rules. It will be possible to apply the mentioned advantages upon providing loans still during the first half of 2003, according to the statement of the Ministry of Finance.
Contact: Ing. Jan Pátek, AČSS Secretary, Mobile: 603 329 820, e-mail: tajemnik@acss.cz
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The Association of Czech Building Societies in the Czech Republic (ACSS) comprises five building savings banks. It was founded on June 29, 2000, with the aim of supporting the joint interests of the building savings banks operating in the Czech Republic. It thus continued a long-term informal co-operation among the financial institutions.
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