To combat the real estate crisis, Bruno Lemar is increasing the rates of interest-free loans.

In2024, zero-interest loans will be increased to combat the real estate market crisis, said Minister of Economy Bruno Le Maire.

Economy Minister Bruno Lemaire, speaking on RTL radio on October 18, 2024, announced an increase in the maximum loan amount and an expansion of the range of recipients.

The zero-interest loan program will be increased to 100,000 euros and expanded in 2024 to a wider range of households and in more cities, Economy Minister Bruno Lemaire said, amid a crisis in the real estate market.

The maximum loan amount with zero interest rate will increase from 80,000 to 100,000 euros, the share of this loan relative to other loans taken from the bank will increase from 40% to 50% for low-income families, the loan will also become available for the middle class, and finally, it will be extended to 210 additional cities, the minister explained the details on a morning show on RTL.

A zero interest rate loan allows families, mostly first-time buyers, to limit the cost of financing their primary residence, whether it is a new home or an older home that requires energy efficiency improvements. As the name implies, a zero interest rate loan does not require interest payments.

The real estate market is feeling the sharp rise in interest rates initiated a year and a half ago by central banks and, in turn, reflected by retail banks in their lending policies. Production of new housing loans, excluding refinancing, in France fell below 10 billion euros in August, to 9.9 billion euros, the first time in more than 7 years.

At the same time, the Economy Minister confirmed that the price of fuel sold by Total Energy will be capped to €1.99.

Bruno Lemaire told RTL radio station that he had met with the oil and gas giant's CEO Patrick Pouyanné, who “committed to maintaining this limit on all fuels through 2024.” “I welcome this commitment because it is a real defense,” the minister said.