Czech Housing Gets Government Boost

PRAGUE-The Czech government has approved a bill to guarantee loans for construction companies or individuals to build rental housing in a dual effort to boost the frozen construction industry and tackle a nationwide housing shortage.

The bill guarantees loans for either up to 70% of the cost of construction or CZK1.5m ($87,057) per flat for companies building rental apartments, Prague Post reported. The money will come directly from the state fund for housing development. The loans will be available to any company or individual who invests in rental housing construction. The government loan system comes in response to growing complaints from developers on the difficulty of securing loans to fund new projects.