During the 2021 annual congress of the Argentine House of Construction (Camarco), the Minister of the Economy Martin guzman He said he hopes that a draft that the ruling party sent to the Chamber of Deputies last year will be approved soon and whose legislative process has not flourished. On the same day, the government sent the construction laundering project, which was discussed and approved.
“During these almost two years of government 15 economic laws have been voted, all with a significant impact on the creation of economic conditions for an Argentina which has more capacity to generate work, which adds value and is more stable ”, declared the Minister. Among them, he mentioned: “Laws that promote the development of the capital market, laws that underpin the recovery of the construction industry, including a bill that is still in Congress and that we hope to be able to deal with soon. . focus on mortgage credit options”.
Currently, obtaining a mortgage is virtually impossible for most Argentines. After the failure of the UVA system, most of the banks they withdrew their loan offer to acquire houses. You are barely available just a few alternatives for vulnerable sectors, led by government sponsored subsidized lines, such as Procrear and Casa Propia.
The real estate market shows the effects of the lack of financing. At August, alone 2518 writings were written In the city of Buenos Aires. Was the second worst record for this month, only behind the 2020 figures, affected by health restrictions.
What is the project presented by the Government?
On October 21 of last year, Guzmán presented a project to build a system of coverage and promotion of mortgage credit, through which an administrator mortgage company would be created and new mortgages with tiered coverage in the face of declines between wages and inflation.
Depending on the project, creation of the Argentine Mortgage Company The SA will not commit current resources from the National Treasury or the Central Bank and its main tasks will be to administer the Hedge and Promotion Trust Fund (FFCP) for fill the quota gaps, to agree guarantee stimulate bank financing and stimulate financial investments in trusts, as well as to operate in other related instruments.
At the same time, the Coverage and Promotion Trust Fund will be composed of a grab assets of banks that participate in the mortgage market between 1% and 5% of the residual value of each mortgage loan covered, a quarterly contribution of up to 1.25% of the return on the interest-bearing commitments of the BCRA for the quarter and a the premium contained in the deposit to be paid by the mortgagor will be added.
What would new mortgages look like
The bill sent by the ruling party proposed to launch a series of new mortgages nominated by inflation for the creditor, either by units that can be discounted by CER or by the construction index (ICC), and based on the coefficient of variation of salary (CVS) for the debtor. The Central Bank would be responsible for defining the final instrumentation for the new lines.
The project indicates that these new credits would be available for the following cases:
- Construction on its own land or to be acquired;
- Acquisition or change of accommodation by a brand new (only first writing);
- repair, extension or termination;
- buy it change of individual dwelling of permanent occupation.
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