Government launches plan to revive mortgage lending

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Economy Minister Luis Caputo announced a AR$2 trillion plan to revive mortgage lending in Argentina by using the Sustainability Guarantee Fund (FGS) to guarantee long-term bank deposits. The program, which aims to provide housing solutions for 17,000 to 18,000 families, is intended to address the low level of mortgage loans in the country, which currently account for roughly 2% of GDP. The government plans to execute the funding through auctions of AR$200 billion each, with the first scheduled for early September.

Consequences

The initiative is expected to stimulate the construction sector, which has faced a decline in activity and significant job losses following a government freeze on public works. By injecting liquidity into the market, the plan may lead to increased home sales and, eventually, a rise in the construction of new housing units.

Sources

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