According to paragraph 3, Article 21 of the Housing Act No. 44/1998, including later amendments and Article 14 of the Regulation No. 522/2004, on HFF mortgages and bonds, the Board of the Housing Financing Fund (HFF) can decide the interest rate on HFF bonds based on financing cost from regular auctions of HFF bonds on the one hand and on the weighted average financing cost of prepaid loans on the other, in addition to an interest premium. HFF's interest rate decision is based on yield at the HFF bond auction held on 18 April, in addition to the weighted financing cost of the prepayments of HFF bonds. The weighted interest rate for the auction and prepaid HFF bonds is 4.73%. The Board of the Housing Financing Fund has sent a proposal to the Minister of Social Affairs suggesting a raise of 0.25% of the Fund's interest rate premium due to prepayment risk, from 0.25% to 0.50%. The Minister has accepted the proposal in a letter dated 10 April, 2008. The interest rate premium for operations is 0.25%, 0.20% for lending risk and 0.50% for prepayment risk, according to the above. Therefore the Housing Financing Fund, as a result of an auction of HFF bonds, has decided to make the following change on the Fund's lending rates: The interest rates on housing loans with a prepayment clause will be 5.20%, while the rate will be 5.70% for loans without such a clause. The new interest rate decision takes effect today, 21 April, 2008.