The entity’s board of directors once again rejected the initiative presented by the MEF in Parliament and also proposes its merger with the BROU.
The Board of Directors of Banco Hipotecario del Uruguay rejects the project that proposes its merger with BROU.
Capture: Telemundo
The Directory of Mortgage Bank of Uruguay (BHU) returned to demonstrate against the government bill that proposes a solution for some 2,500 debtors, considering that it could generate massive claims, while they clarified that, if the initiative advances, a merger with the Republic Bank (BROU).
The text was presented in Parliament by the Ministry of Economy and Finance (MEF) and had been announced by the nationalist senators Sergio Botana and Carlos Camy, next to the colorado German Coutinho, who spoke of a “big effort” that will mean “a solution” for Uruguayan families.
For the President of the BHU, Casilda Echevarría, the bank “has the possibility, due to its patrimonial responsibility, to bear the impact” of the application of the initiative. Thus, before the Senate Housing Commission, he insisted that he can move forward “without the need to join Banco República”.
While, Gabriel Frugoni, director for the Broad Front (FA), considered before the legislators that a merger with BROU would take years and would imply a “loss of credibility”. In addition, he alerted for a “contagion effect” that could encourage other debtors not included in the project to try to achieve write-offs through the courts.
The bill presented by the MEF
When presenting its bill, also questioned by AEBU, the MEF separated into three large groups to debtors who have paid until at least December 31, 2022. The main beneficiaries will be those who have 40 years paying the credit, to which the debt will be settled if it is up to date.
In addition, there are variants for those who ten years to go to reach 40, to whom the current installment will be maintained while the debt in UR is readjusted, which accelerates the amortization of the credit. Finally, the last sector contemplates those who lack between 10 and 30 years to reach 40, who will continue to pay the quota but with a debt growth in UR at 2.5%.
Regarding the merger of the banks, the text indicated that this proposal is to give “viability and sustainability” to the proposal of debtors, with a structure broader and more competitive.
Source: Ambito
