Insuring houses for natural disasters, Minister Mete gives details: It is not a tax, but an affordable fee

2023-10-18 11:44:00, Aktualitet CNA

Insuring houses for natural disasters, Minister Mete gives details: It is not a

Ervin Mete

After the government meeting, the Minister of Finance and Economy, Ervin Mete, was asked by the media about the draft law on housing insurance for natural disasters.

According to the Minister of Economy, this fee is not a tax, but a basic insurance measure that will enable earthquake protection.

He added that this fee will be affordable by the citizens. Mete discovered that the essence is the creation of a fund where the risk is transferred from the country to the largest companies

Regarding the value of this fee, the minister said that it will be calculated in the future and will be detailed in order to respond to the nature of the risk, but also the geographical extent, which will also affect the payment.

"It's not a tax, it's a basic insurance measure that will enable earthquake protection. Its essence will be to be affordable. Even for layers with support, we will make sure it is affordable. The draft will be revised in the spirit of best practices, we are reviewing it with the World Bank. Such a scheme has been used in Turkey, the essence of which is the creation of a fund where the risk is transferred from the country to the largest companies. Where in case of risk we will have faster intervention. The state budget has now financed 890 million euros for the reconstruction. When such schemes are set up, it is possible to transfer risk and act quickly in the event of a disaster. The draft law is under discussion. The value will be calculated and detailed with VKM to respond to both the nature of the risk and the scope. The wider the scope, the lower the payment," he said./ CNA