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[BUSINESS] · Argentina · 100 sources

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Argentina launches 2 trillion peso mortgage credit program

Economy Minister Luis Caputo has announced a new mortgage credit program in Argentina aimed at stimulating the housing market. The initiative will utilize up to 2 trillion pesos from the ANSES Sustainability Guarantee Fund (FGS) to provide long-term funding to banks.

The program is designed to address the mismatch between short-term bank deposits and long-term mortgage loans. The funds will be offered to financial institutions through public auctions in tranches of 200 billion pesos. These auctions will include two terms: one-year placements with a minimum rate of UVA + 2.50% and five-year placements with a minimum rate of UVA + 4.50%.

Banks using these funds must offer mortgage loans specifically for the acquisition or renovation of a first home. These loans will have a maximum interest rate of UVA + 7.50% and a minimum term of 15 years. The program is estimated to facilitate between 17,000 and 18,000 mortgage loans, with an average loan amount of approximately 80,000 USD. The first auction is expected to take place next week.

Entities

Anses · Argentina · Banco Central de la República Argentina · Casa Rosada · Central Bank of Argentina · Central Bank of the Argentine Republic · Chamber of Deputies · Consejo Interuniversitario Nacional · FGS · Fondo de Garantía de Sustentabilidad · Javier Milei · Luis Caputo

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