The Government dissolved the Procreate Program and announced the implementation of divisible mortgages for real estate projects under development. Meanwhile, doubts arose about the future of the beneficiaries, how the measure will affect the loans in progress and the homes already awarded.
The presidential spokesperson Manuel Adorni The decision was advanced this Tuesday and today it was confirmed with the publication of the Decree 1,018/2024 published in the Official Gazette.
In this way, the Government moved forward with the dissolution of the program Procreate created in 2012 under the management of Cristina Kirchner, which offered credit lines subsidized by the national State for access to housing.
Bye Procrear: what will happen to the current credits and the awarded homes
According to the decree in question, article 3 instructs the “Ministry of Economy to enter into a contract with Banco Hipotecario SA for the continuity of the credit management under the same remuneration conditions established in the trust contract signed on July 18, 2012″. In this way it is clarified what will happen to the current credits.
Likewise, article 4 authorizes the Ministry of Economy to dispose and manage “movable and immovable property, including its improvements, within the framework of what is established in article 1, as well as the regularization of ownership of the properties.” Meanwhile, the signing of a contract between the Ministry of Economy and the Mortgage Bank is established “under the same remuneration conditions as those established in the Trust Contract signed on July 18, 2012 for said efforts.”
Therefore, some clarifications are in order for the beneficiaries affected by the Government measure:
Credit management continues with Banco Hipotecario
He Ministry of Economy has been authorized to sign a contract with the Banco Hipotecario SA., which will assume the administration of the existing credits under the same conditions already agreed upon. It means that the beneficiaries will continue making their payments to Banco Hipotecario, without changes in their installments or in the conditions of their mortgage credit.
Transfer of assets to other entities
Procrear properties that do not have current construction contracts will be transferred to the State Property Administration Agency (AABE)allowing a relocation of these resources and, possibly, new opportunities for provinces and municipalities to manage properties for the benefit of their communities.
Guarantee for Awarded Beneficiaries
Beneficiaries who have already been awarded a property or are in the process of construction can rest assured that Banco Hipotecario will continue to manage their contracts under the same conditions. Pending or new obligations that arise during the liquidation process will be covered with the funds generated by the collection of credits or by the sale of the fund’s properties.
They eliminate Procrear: what will happen to the plans in process or not awarded?
For those applicants who were awaiting award or in the early stages of the process, the situation is less clear, since the decree does not explicitly establish a continuity plan for non-awarded projects. However, the Ministry of Economy, in collaboration with the Banco Hipotecario, will evaluate each case depending on the provisions of the Trust Agreement and complementary regulations.
Mortgage loans allow you to access your own home, but it is important to understand how they work.
With the dissolution of Procreate, the Government moves away from direct intervention in housing financing, arguing that this task corresponds to banking institutions, both public and private.. The reforms established by the Central Bank in 2023, together with the reduction of inflation, seek to encourage the granting of mortgage loans by financial entities, facilitating access to housing without the need for a state fund such as Procrear.
For the current beneficiaries of Procrear, The Government ensures the continuity of its ongoing credits through the Mortgage Bank, under the same conditions previously agreed upon. However, those awaiting adjudication could face a different scenario, with less clarity in the process of accessing housing.
Source: Ambito
