The preferential interest law is a legislative priority

President-elect in Commission for Economy and Finance of the National Assembly, Melchor Herrera as a priority stated the project of Law on preferential interest presented by Minister of Housing and Spatial Planning Rogelio Paredes.

For Herrera, the proposed law stands out because it represents support for the middle and lower middle class, which has been strongly affected by the pandemic, and in addition to bringing dynamism to a sector of the national economy that is a major generator of jobs.

“The law has achieved its goals, which are aimed in two ways: the first is to make it easier for the working class to acquire their home, and the second is to help boost the construction area and promote investment to develop large housing projects, which in turn helps reduce the country’s housing deficit,” said Paredes.

The bill expands the benefits of the interest regime in mortgage loans and creates 100% preferential interest coverage for homes worth up to $45,000.

It is aimed at the purchase of the first home, and discounts on bank interest are determined at the time of acquiring the property, the range of benefits of which covers houses with prices from 45 thousand dollars to 180 thousand dollars.

Mechanism approved in cabinet council determines that in the range of 45,000 to 80,000 dollars the state absorbs 4% of the interest; from 80 to 120 thousand dollars, 3% is financed, from 120 to 150 thousand dollars, the state finances 2%, and from 150 to 180 thousand dollars, it would be 1.5% of the total interest.

The application will lower housing costs because standard bank interest rates are no longer paid, but rather a discount strategy that is not favored in other countries, said the head of Miviot.

The new project, which consists of nine articles, establishes that preferential housing loans approved from the moment this law was passed until December 31, 2025, will be granted benefits, except for established exceptions.

The president of the commission is accompanied by deputies Gonzalo Gonzalez as vice president, Fernando Arce as secretary and deputies Arquesio Arias, Miguel Fanovich, Pedro Torres, Arnulfo Diaz and Dalia Bernal. and edison bronzeas trustees.

Among the primary functions that the Commission on Economy and Finance will have is to study, propose laws and issue concepts on issues such as: negotiation and contracting of loans, public credit, national debt and its servicing, taxes and national contributions, rents and official monopolies for the care of public services, and tax law reforms, among others.