“It is vital not to have fiscal deficit”
Jorge Brito, president of Banco Macro, explains his views on the economic reality of the country in his editorial for the newspaper Perfil.
The mortgage loan is a very important tool for society since for the families, the home is the property they all want to have access to.
In Argentina we have had many periods of mortgage loans. The last stage of irruption of these loans was in 2006. In those years, Argentina had reached the fiscal surplus, commercial surplus with a competitive exchange rate and a one-digit inflation rate. At that time, Banco Macro offered its clients 15-year mortgage loans with a 9.75% rate in pesos. They were a success. It was the best of all the credit lines that existed in the last 30 years.
In the last 10 years, mortgage loans went down. It was only in the year 2016, with the new economic policy, that the Central Bank said “Let us not lose the next 4 years doing nothing” and then it was sought to generate a system of deposits and credits adjustable by inflation: UVA (purchasing power units.)
Nowadays, in the year 2017, banks have as an offer in the Argentinean financial market, loans that go from a 15-year term to a 30-year term. More specifically, Banco Macro offers 20-year loans with the lowest rate in the market: 3.5%. And for those clients with higher savings opportunities, Banco Macro offers a line of credit of up to 16 million pesos that can be allocated for the purchase of a second home. This line is the most groundbreaking line in the market and the one that generates the most expectation among the clients of Banco Macro.
It is a clear opportunity. As it wasn’t the case for many years, families have the possibility to enter the mortgage loan market but, this time, with the concrete opportunity to stop renting and become homeowners.
It needs to be highlighted that it is vital, in order for these indexed loans to end up being with a rate of 6% or 7%, it is key, not only to work on the monetary (…) but also to work, basically, in understanding that the inflation problem is a fiscal deficit problem.
Another main issue is that Argentina does not have a currency. Argentineans have not been thinking in pesos for many years. Our minds are in dollars (…) it is necessary to have, for a period of 10 years, inflation rates close to 6% or 7%, since it is the only way that the Argentinean can trust its currency. We need a long period of low inflation.
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