• The premium granted by the State represents an investment for the State. The multiplier can be 3 to 3.5 times higher than the State investment via the State premium.
• For about 500 million RON invested by the State for a period of 5 years in the Bauspar system via the State premium, the State will receive back at least 1,757 million RON only from taxes and duties.
• IRSOP: 75% of the people saving in the Bauspar system use the funds (savings, interest, State premium) to improve the family housing
• The main priority of 600,000 Romanian families is the improvement of the living comfort, in a country with the most obsolete housing stock in EU - according to Eurostat.
• The average income of Romanians is about half of what a Czech, Slovak or Croatian earns, while the cost of construction materials is relatively similar to that of Romania.

An impact analysis conducted by the Association of Housing Banks in Romania shows that stimulating citizens to actively participate and save through the collective saving-lending system for housing has many advantages:

• The State actively contributes to maturing the system by increasing saving in the long term, while rapidly forming the distribution mass used to grant loans to those who wish;
• The Bauspar system has an educative role, promoting a diligent constant saving behaviour, over a long period of time, for capital formation;
• The State premium will unquestionably return to the budget through taxes and duties generated in chain by the jobs maintained and created both horizontally and vertically, by the investment of Romanians in improving their living comfort.

An IRSOP research conducted in this regard in 2015 shows that housing financing is based only 30% on bank loans and 70% on own funds represented by: savings 41% (the Bauspar system being of help in this regard) and earnings 29% .

75% of those who saved using this system year after year, without contracting loans later, said that the amounts they subsequently withdrew (their savings + interest + State premium) were also used for improving family housing (shown in a study of BCR Housing Bank conducted by IRSOP).

Moreover, if in 2011 the total volume of loans for housing amounted only to 55 million RON, in 2015 the total loans amounted to 294 million RON. The saving-lending system is the only one who has experienced steady growth year after year, even after 2010, throughout the economic crisis.

The financial effort of the State for a further period of 5 years would amount to approximately 500 million RON, with the result that the State will receive back at least 1,757 million RON only from taxes and duties, thus reaching a multiplier of up to 3 - 3.5 times the State investment via the State premium.

If the Bauspar system would operate normally, by 2020 the investments based on the Bauspar system would amount to 1 billion EUR, which would be an important vector of economic growth and well-being for hundreds of thousands of Romanian families.

The main investment priority of about 600,000 Romanian families is the improvement of the living comfort, in a country with the most obsolete housing stock in EU - according to Eurostat. However, the average income of Romanians is about half of what a Czech, Slovak or Croatian earns, while the cost of construction materials is relatively similar to that of Romania.

THE BAUSPAR SYSTEM

What is collective saving and lending for housing?

The collective saving and lending mechanism for housing, known internationally as ”Bauspar”¹ represents a special banking system, implemented through specialized banking institutions (”housing banks”), representing an alternative for financing the development of the housing system, both for the construction / purchase of new housing and for upgrading existing ones.

In essence, the mechanism of the system is as follows: any interested person concludes a saving-lending contract, undertaking, for a determined period of time, to save a certain amount of money

The State encourages the effort of citizens, regardless of age, to improve housing conditions, to give up immediate consumption for the benefit of long-term investment in housing, by providing the State premium, according to the laws in force.

Upon the completion of the saving process and depending on the conditions of distribution, the customer acquires the right to contract a loan with fixed interest.

¹ The word comes from German, and it is the combination of two verbs: ”bauen” - to build and ”sparen” - to save.