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


At the 2021 annual meeting of the Argentine Chamber of Commerce (Camarco), the Minister of Economic Affairs Martin Guzman He said he hoped a project the ruling party sent to the Chamber of Deputies last year would soon be approved and its legislative process unsuccessful. On the same day, the government submitted the construction bleaching project, which was discussed and approved.

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

Currently, it is practically impossible for most Argentines to get a mortgage loan. After the failure of the UVA system, most banks have they withdrew their loan offer Houses to acquire. You can hardly be reached just a few alternatives for vulnerable sectors, led by subsidized lines funded by the government such as Procrear and Casa Propia.

The real estate market shows the effects of the lack of funding. on August, only 2518 fonts were made In the city of Buenos Aires. Was the second worst record for this month, just behind the 2020 numbers affected by hygiene restrictions.

What is the project submitted by the government about?

On October 21 last year, Guzmán presented a project to set up a mortgage credit cover and promotion system through which a mortgage company with administrative rights will be created and new mortgage loan with installment coverage given the decline between wages and inflation.

After the project, Establishment of the Argentine Mortgage Company SA will not tie up any ongoing funds from the National Treasury or the Central Bank and its main role is to manage the Trust Fund for Coverage and Promotion (FFCP) for Cover the quota gaps, grant guarantee to boost bank financing and Boost financial investments in trusts, as well as other related instruments.

Meanwhile, the Coverage and Promotion Trust Fund consists of a entry Assets of banks participating 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 paid liabilities for the quarter, and a premium included in the Installment payable by the mortgagee will be added.

What would the new mortgage loan look like

The bill tabled by the ruling party proposed a number of new mortgage loan which are nominated for the creditor by inflation, 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 responsible for determining 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 residence by a Brand new (just write first);
  • repair, Renewal or termination;
  • buy the Change of single apartment for permanent occupancy.

Disclaimer: This article is generated from the feed and is not edited by our team.


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