Cristina Fernandez announces plan to build 400.000 new houses in four years
In an attempt to recover the political initiative and sliding opinion polls Argentine President Cristina Fernández announced the launching of an ambitious housing program aimed at building 400.000 homes in the next four years.
The mortgage financing program will grant up to 350.000 Pesos (approx 65.000 US dollars) exclusively for the construction of new homes and interest rates will range from 2 to 14%, depending on the family's monthly income.
At the ceremony on Tuesday afternoon the Head of State signed the decree creating the Argentine Bicentennial Mortgage Program, which was then introduced by Deputy Economy Minister Axel Kicillof. Funds will be provided by Social Security ANSES funds and Argentine Treasury.
ANSES head Diego Bossio clarified that there is no required minimum income to access the mortgage and explained that interest rates shall range from 2 to 14%, depending on the family’s monthly incomes.
The mortgages options include with or without a plot of land, for which the Argentine government has done a survey of all the urban land it owns, some of it “very valuable” that will be used for housing programs.
Deputy Economy minister Kicillof mentioned that a total of 17.000 hectares of urban land had been surveyed and will be available.
The mortgage loans will be granted exclusively for the construction of new homes and will be payable in between 20 and 30 years.
“The Government aims to reverse the housing crisis which the country has been dragging since neo-liberal policies were applied to Argentina's economy in the seventies” added Kicillof.
The young economist who is described as “too interventionist” by orthodox colleagues, emphasized that loans are for the construction of “new houses” and not “credits to buy new houses”, which was the main cause behind the monumental financial speculation and real estate bubble in the US.
Cristina Fernandez said the housing program will demand an agreement with all companies from the construction sector to avoid the “shortcuts” and “price fixing” when government plans are launched.
Private banks have a role to play, “instead of being so generous with the financing of credit cards and plastic money, we would now like them to invest some of those formidable earnings in the construction of new houses”, added the president.
Argentine Government officials including Vice-President Amado Boudou, Buenos Aires province Governor Daniel Scioli, Industry Minister Débora Giorgi, Central Bank governor Mercedes Marcó del Pont also attended the ceremony.
Kicillof is considered the rising star among President Cristina Fernandez closest advisors, while Federal Planning Minister Julio De Vido who for the last eight years has been managing billions in investment funds and was a very close friend of Nestor Kirchner, is rapidly loosing ground and influence.
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A couple of murals on each street corner will probably be suitable zones of worship.
BK, being a Brit I’m slightly surprised that you didn’t know about this:
“The government in investing £4.5billion in a building programme to deliver up to 170,000 new affordable homes, on top of a further £1.3billion to get stalled developments back on track and to build the infrastructure needed to unlock sites for housing.”
“This is on top of a range of measures to help aspiring first-time buyers take their first step onto the property ladder including the NewBuy Guarantee which offers the chance to buy a newly-built home with just a fraction of the deposit that's normally required.”
So we’re covered then as this is already in the pipeline and underway. Still really suprised that you hadn't picked up on this, it is pretty main stream news in our country. I also doubt very much that the owners of these new homes will be charged interest rates of 14%...
Seems this is an old photo then.
This is just another scam for cronies to become rich using the Pension $ of the workers.
Anses is already bankrupt so I wonder where Pension payments will be coming from...directly from the budget I guess. Print Print Print.
Has Argentina learnt nothing from the the US housing crash. This has sub prime morgage written all over it. It is designed to intrench reliability of the poor on the Peronist government. If they want to do something to help the economoy and people sort out the bloody inflation.
Also Arg will not end up building these houses the money will quietly disappear into cronies pockets and no one will ever talk about it again.
Jun 13th, 2012 - 11:20 am
BK is not a Brit. It might lived here for a time, it might still live here but I doubt it. It might have British connections somewhere along the way but it is not a Brit. It's sycophantic pap aside it's grasp of UK politics just seems aloof. There is no substance, no context to anything that it says.
I think it is one of the La Campora Mind F*ck Regiments special operations troopers. It is persistent and it covers it's tracks reasonably well but it just talks the kind of shite no Brit this side of a dick sucking Whitehall mandarin would be caught dead saying . It's terms are couched in cotton candy, chocolate and raisins but when you crack it open you find a turd inside it.
I am not short on words, so please bear with the length of this post. It is requisite, even in this summary sketch, to go back a few posts to see how every so often, British_Kirchnerist tries fomenting squalid forms of political tyranny. Whenever he gets caught doing so he changes topic calculated to divert the thread.
The worst sorts of gormless twaddlers there are have increasingly been feeding on the politics of resentment, alienation, frustration, anger, and fear. British_Kirchnerist has a lot to answer for in regard to that.
Finally, any one of the points I made in this post could be turned into a complete research paper, but the conclusion of each would be the same: British_Kirchnerist is morally debased and has no convictions of right or wrong.
The interest rates of up to 14 percent may seem high from the British perspective, but given that the loans are denominated in an ever-inflating peso, these rates are a giveaway. The interest rate schedule that charges a higher rate for borrowers with higher incomes seems somewhat unfair.
The big question is where the money will come from. They apparently will use pension money along with payment promises to back these loans, but I think when all is said and done, the money will just be “created electronically” just as the banks do in England and America. So it appears that this program is Argentina's version of what they call quantatative easing in America. Instead of printing money and sending it to investment banks to cover bad bets, Argentina is printing money and sending it to poor people to build houses. Both methods of pumping up the economy have their fraud possibilities, but I think on balance it is better to put the money directly into economic activity that will benefit the majority of citizens. This program has got to be better than sending new money to Goldman Sachs.
I assume you already know that the chief difficulty in writing about Argentine Bicentennial Mortgage Program is that the passage of time will make it clear to even the more slow among us that a common thread runs through most of its theatrics, a thread so sordid that it disgusts me nearly to the point of physical illness, but I have something more important to tell you.
Argentine Bicentennial Mortgage Program's pranks promote a redistribution of wealth. This is always an appealing proposition for Argentine Bicentennial Mortgage Program's patsies because much of the redistributed wealth will undoubtedly end up in the hands of the redistributors as a condign reward for their loyalty to Argentine Bicentennial Mortgage Program.
Let me close where I began: It's hard to fathom just how cuckoo Argentine Bicentennial Mortgage Program is.
what have you wrought?
a fog of chaos as feelings creep.
once we drank of heaven,
innocent and glad-hearted,
but your desire died.
a deadened pool of pain -
thoughts follow love, follow hate,
love taken away.
in a haze of tears,
i reject you.
[Kretina to Festor before killing him]
It depends how much was in the pension pot they stole and how much they sell the houses for...
El Cuento del Tio:
I stole you pension, now I am going to build a house with the money I stole from you and sell it to you at more than it cost me to build it.
When will Maximo be diversifying his portfolio to include construction?
... and gold thrones.
I knew he had bought some hotels - a clever ploy when you think that mummy is going to devalue the peso, hence boost tourism.
I didn't know that he was already in construction.
If I were him I would keep my golden throne in Switzerland or somewhere safe.
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