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In electoral terms, Martín Guzmán demanded that Congress approve his project to reactivate the mortgage loan

At the 2021 Annual Convention of the Argentine Chamber of Construction (Camarco), the Minister of Economy Martin Guzman He said that he hopes that a project that the ruling party sent to the Chamber of Deputies last year will be approved soon and whose legislative process did not prosper. On the same day, the Government sent the construction bleaching project, which was discussed and approved.

“In these almost two years of Government 15 economic laws were passed, all with a significant impact on building economic conditions for an Argentina that has more capacity to generate work, which adds value and is more stable, ”said the minister. Among them, he mentioned: “Laws that favor the development of the capital market, laws that underpin the recovery in the construction sector, including a bill that is still in Congress and that we hope can be dealt with soon. favor the possibilities of mortgage credit”.

Currently, getting a mortgage loan is practically impossible for most Argentines. After the failure of the UVA system, most banks they withdrew their loan offer to acquire homes. You are barely available just some alternatives for vulnerable sectors, led by subsidized lines sponsored by the Government, such as Procrear and Casa Propia.

The real estate market shows the effects of the lack of financing. On August, only 2518 writings were made In Buenos Aires city. Was the second worst record for that month, only behind the 2020 numbers, affected by sanitary restrictions.

What is the project presented by the Government about?

On October 21 of last year, Guzmán presented a project to build a Mortgage Credit Coverage and Promotion System, through which an administrator Mortgage Company would be created and new mortgage loans with installment coverage in the face of declines between wages and inflation.

According to the project, creation of the Argentine Mortgage Society SA will not commit current resources from the National Treasury or the Central Bank and its main tasks will be to administer the Fiduciary Fund for Coverage and Promotion (FFCP) for cover quota gaps, grant guarantee to boost bank financing and to boost financial investments in trusts, as well as operating in other related instruments.

Meanwhile, the Coverage and Promotion Trust Fund will be made up of a input assets of banks that participate in the mortgage loan market between 1% and 5% of the residual value of each covered mortgage loan, a quarterly contribution of up to a maximum of 1.25% of the profitability of the BCRA’s remunerated liabilities for the quarter and a premium contained in the installment to be paid by the mortgage debtor will be added.

What would the new mortgage loans look like

The bill sent by the ruling party proposed to launch a series of new mortgage loans that are nominated by inflation for the creditor, either by units that can be updated by CER or by the Construction index (ICC), and based on the Salary Variation Coefficient (CVS) for the debtor. The Central Bank would be in charge of defining the final instrumentation of the new lines.

The project indicates that these new credits would be available for the following cases:

  • Construction on own land or to acquire;
  • Acquisition or change of housing by a brand new (only first write);
  • Repair, extension or termination;
  • buy the change of single dwelling of permanent occupancy.

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