Portfolio guarantees are expected to be available from the fourth quarter of 2020.
Until now, commercial banks have not offered products to improve the energy efficiency of private houses, as owners may have difficulties with ensuring sufficient co-financing, as well as private homes in certain areas of Latvia do not have sufficient collateral values.
Now, in order to obtain a loan for improving the energy efficiency of a private house, covered by Altum, the homeowner will have to refer to a credit institution that will have a cooperation agreement with Altum.
The guarantee rate will be up to 30% of the loan amount, up to a maximum of EUR 40 000, for a period of 10 years.
The Altum guarantee will be open to commercial banks if the loan is granted:
- to a natural person whose rights to immovable property and the residential house in concern have been established in the Land Register;
- to a renewable building which is an individual residential house, a twin or row house or a separate two-apartment house;
- for building renovation, including works in building enclosing structures; rebuilding or building of engineering systems; the purchase and installation of a new boiler; the purchase and installation of micro-generation technology for the generation of thermal energy or electricity to ensure the production of heat or electricity from renewable energy sources and the supply of heat or electricity solely for the specific household's needs.
Prior to granting the loan, Altum will carry out a verification and assessment of the energy efficiency result.
The energy efficiency improvement program for private houses is to be financed from the national energy efficiency fund of €355 500 and €2 million from the spare capital of Altum.
The program is expected to provide an average of 250 loans annually.
"For the first time, we can also offer support for energy efficiency measures to private house owners. Until now, three or more apartment buildings have had access to support from European Union funds for energy efficiency, while residential buildings with fewer apartments or individual residential buildings have not had support tools available," said Minister of Economics Janis Vitenberg (KPV LV).
On average, these buildings are significantly less efficient than multi-apartment residential buildings, so this government decision is the next step to improving the quality of life, the minister said.