Argentina seeks economic boost through new mortgage credit

Argentina is seeing a reactivation of long-term mortgage credit, which industry leaders suggest could serve as a significant driver for economic recovery. As the state reduces its deficit, the Fondo de Garantía de Sustentabilidad (FGS) is positioned to provide medium- and long-term funding to banks, helping to address the historical difficulty of securing 20- to 30-year loans.

Carlos Spina, Vice President of the Asociación de Empresarios de la Vivienda (AEV) and the Cámara Empresaria de Desarrolladores Urbanos (CEDU), emphasizes that financing new construction rather than existing homes provides a greater economic multiplier effect. Unlike the purchase of existing property, which primarily transfers wealth, financing new builds stimulates investment in land, materials, professional services, and formal employment.

Experts note that while the FGS is a vital resource, its investments must adhere to strict criteria regarding security, profitability, and the sustainability of the pension system. Tools such as divisible mortgages are being highlighted to better link credit availability with ongoing real estate development projects.