ORDER OF THE GOVERNMENT OF THE REPUBLIC OF MOLDOVA

of May 10, 1999 No. 416

About approval of Strategy of the housing market and other real estate

Based on the orders of the Government of the Republic of Moldova N 304 of June 10, 1996. "About measures for creation of the housing market and the real estate" (The official monitor, 1996, N 42-44, Art. 360) and N 270 of April 8, 1999. "About approval of the Program of activities of the Government of the Republic of Moldova for 1999-2002 "Domination of the laws, revival of economy, integration into the European structures" (The official monitor, 1999, N 39-41, Art. 279) DECIDES: the Government of the Republic of Moldova

1. Approve the Strategy of the housing market and other real estate (appendix N 1).

2. To the Ministry of Economics and reforms and to the Ministry of Finance to cooperate with international financial institutions and the donor organizations, and also with creditors for the purpose of attraction of technical assistance, the profitable credits and investments for accomplishment of the actions provided by the above-stated strategy.

3. Make changes to structure of Council for supervision of activities of the National agency on services in the field of housing and the real estate approved by the Order of the Government of the Republic of Moldova N 304 of June 10, 1996. (The official monitor, 1996, N 42-44, Art. 360), having been reworded as follows according to the appendix N 2.

Appendix №1

to the Order of the Government of the Republic of Moldova No. 416 of May 10, 1999

STRATEGY OF THE HOUSING MARKET AND OTHER REAL ESTATE

INTRODUCTION

The strategy of the housing market and other real estate (in dalneyshemstrategiya) is developed based on the orders of the Government of the Republic of Moldova N 304 of June 10, 1996 "About measures for creation of the housing market and the real estate" (The official monitor, 1996, N 42-44, Art. 360) and N 270 of April 8, 1999. "About approval of the Program of activities of the Government of the Republic of Moldova for 1999-2002 "Domination of the laws, revival of economy, integration into the European structures" (The official monitor, 1999, N 39-41, Art. 279).

After declaration of independence of the country in economy, political institutes, social conditions and conduct of life of the population there were big transformations. Owing to successful carrying out privatization the most part of the companies and 88% of housing stock of the republic belong to private sector today. However the insignificant income of the population and the state and slow changings in institutional structures determined unsatisfactory condition of housing stock. It requires acceptance of radical measures for improvement of situation in the sector.

In 1994 when the Concept of national housing policies was accepted, the Government determined the basic principles of the current strategy:

a) option each family of method of the solution of housing problems;

b) accurate distribution of functions on its realization between public and private sectors;

c) creation of conditions for market development of housing and other real estate.

The concept of national housing policies planned various tactical measures, having determined realization of these basic principles in three stages within 10 years. Process of implementation of the concept is begun with development of the legislation and technical standards, including drafts of the laws on housing, about condominium and about expropriation for social needs and some orders of the Government about attraction of off-budget investments. At the same time, Concept provisions on development of the credit and financial mechanism promoting acquisition and construction of housing for all segments of the population do not take root. The basic reason consists in crisis of economy and, as a result, in decrease in purchasing power of the population, and also in inability of the state to give help by means of allocation of subsidies or other types of financing for acquisition and construction of housing. Besides, there is no interdepartmental coordination of actions on these problems. Therefore in case of development of this strategy the numerous ideas stated in the National housing concept which need to give priority were considered.

CHAPTER I. THE SITUATION WHICH DEVELOPED IN THE FIELD OF THE REAL ESTATE

1. Withdrawal of the parcels of land

The Republic of Moldova inherited social and economic system, general for the former Soviet Union including monopoly of the state for the earth. In spite of the fact that in this system some changes nevertheless happen, privatization of the parcels of land in city areas is performed very slowly, especially in comparison with in high gear privatization of property after 1993.

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