Preferential interest rates must be kept within the same upper limits

The President’s complete veto Laurentino Cortizo The bill extending the period of preferential interest on mortgage loans is another victim of the divergence between the executive and legislative branches.

The proposal was presented by the current President of the Assembly, Crispiano Adames, and is the result of a permanent coordination table he held with the National Council of Private Entrepreneurship (Conep).

The president’s justification is that the Parliament encroached on his land when passing the law on public finance managementsomething that does not suit her even more when budgets are committed for future years such as 2028, the period until which the scope of interest has been extended, through the 1009 project.

“I have to understand that there was no discussion or exchange despite the fact that they are government bodies that must work in harmonious cooperation”, is the impression of Amílcar Trejos, spokesperson of the Panamanian Society of Engineers and Architects (SPIA).

The engineer seems optimistic that both parties can agree, since this subsidy encourages the construction industry which is one of the main pillars of the country’s economy.

According to the latest data from the National Council of Housing Development Promoters (Convivienda) for this year, the growth in the construction of residential units is estimated to be greater than 20%.

“This interest encourages the access of many young professionals to new and well-located properties, that, if they were not there, the purchase costs and the bill would increase significantlyTrejos said.

With the new directive in the Parliament from July, which, by all accounts, will not be a conflict for the Government, the Executive would present its proposal for adoption.

cost limitation

In March, the Housing Minister, Rogelio Paredes, announced that the Ministry of Economy and Finance (MEF) was reviewing the norm, but implied that it would focus on homes priced under $80,000, which lacked inventory.

“We are trying to ensure that the biggest part of the fiscal sacrifice goes to the sectors lower and lower middle class; we know that there is a niche and that it is necessary to build more houses than $80k down“, detailed the title at the time.

However, a SPIA representative defends that the preferential rates cover the $180,000 units as they currently are, and that’s because of rising real estate costs, more by location than by size.

“When you look at the price of real estate, the construction prices in the city center, for example, are around that number; these are realistic prices for the location, not for the dimensions. Built houses have dimensions or cost so much, by reducing the assortment, they would leave their owners free from the market“Trejos was thinking.

The former president of the Association of Real Estate Brokers (Acobir) Iván Carlucci reacted in the same way, asserting that the moment is favorable for preferential interest rates. remain within the currently established ranges.

“International interest rates are rising rapidly. All of us who have mortgages have received calls from the bank indicating that rates have risen,” Carlucci said.