Changes to building saving

Parliament approved a revision to the Building Saving Act on Wednesday that allows the payment of a state subsidy to those building saving clients that use it for construction. It thus abolishes the so-called friendly savers. Only clients with income below 1.3-times the average wage in the economy will quality for the subsidy. The subsidy is capped at €70 annually, and its floor is 2.5% of the annual deposit. The state intends to spend €15m on the state subsidy next year, half of this year’s total.

(SME/6)