Preferential interests would focus only on popular housing

The government is currently considering preferential interests are approved for mortgage loans, and there are sectors that request that they be extended, and even more so at this time when interest rates continue to rise on the international market.

According to the last update of this subsidy, carried out through Law 94 of September 2019interest can be granted on up to $180,000 in homes until August 1, 2024.

He Minister of Housing, Rogelio Paredes, He announced that the Ministry of Economy and Housing (MEF) was reviewing the norm, but implied that it would focus on homes priced under $80,000, where an inventory is required.

“We are trying Most of the fiscal casualties go to the lower and lower middle class sectors; that’s where we know it’s niche and that more $80,000 and under homes need to be built,” the headline reads.

The owner hinted that the audit is on the norm could leave without these interests the houses that have benefits in the current legislation and that exceeds the costs you mentioned.

“We are looking at how the compensation can be arranged so that when it is extended, it has some conditions to go to the lines. where you really need themWalls said.

The minister spoke about shortfall of 100 thousand homes of social interestthat is, the value of 80 thousand dollars or less, which needs to be built.’

10

year interest lasts for houses up to 120 thousand dollars.

5

year interest lasts for houses between 120 and 180 thousand dollars.

He added yes the state provides more than 1,800 million dollars in subsidies and that they “will have to part at some point,” stating that there is enough inventory of homes priced above $80,000.

However, the position of business sectors is different.

In this week, President of the National Assembly Crispiano Adamespresented a draft law to extend the validity of preferential interest rates, in general, until 2028.

“This would alleviate the problem that middle class families have suffering from rising bank interest as a result of the commercial crisis suffered by banks in the United States,” the deputy continued.

The presentation of the draft law does not respect a Adames’ personal interest.

The President of the Parliament established a coordination table with National Council of Private Enterprise (Conep) arrange a discussion on projects that are of interest to this sector.

And the project extending the validity of preferential interest rates for another four years was created at the request of Mr Panama Chamber of Construction (Capac).

For him former president of the Association of Real Estate Brokers (Acobir), Iván Carluccithe moment is favorable for preferential interest rates to 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 gone up,” Carlucci said.

He explained that as interest rates rise, so do apartment prices the purchasing power of Panamanians is decreasingwhich affects not only those who have mortgage loans, but also those who pay rent.

The businessman emphasized that, unlike other subsidies, preferential interests are favorablebecause it is not spent on consumption, but invested directly in the person’s assets.

“Panama is the country in the region with the largest number of owners of their own homes per capita. This is due to the implementation of preferential interest laws many years ago“, he recalled.

preferential interests have been applied since 1985 and are currently reaching $180K residences with varying rates.