The government analyzes reformulating the initiative and dismissing the merger with BROU to move forward with a definitive solution.
In a complicated scenario for its approval, the project that contemplates a solution for some 2,500 families that have credits with the Mortgage Bank (BHU), would suffer a reformulation which consists of creating a escrow to manage accounts debtors in Adjustable Units (UR).
The government analyzes this change after a meeting between advisers of the Ministry of Economy and Finance (MEF) with the directory Republic Bank (BROU) in the Housing Commission integrated with the Treasury of the Senate, at times when voices were added against and in favor of the merger of the BHU with the BROU.
He BROU president, Salvador Ferrer, expressed that there are majority favorable positions regarding the merger could “empower” the client portfolio, as reported by Underlined. But this topic did not convince the board of directors, since it would consider that a mortgage unit inside the Republic Bank. For this reason, Ferrer proposed creating a trust, a proposal that would be incorporated into the project.
In this sense, it transpired that the Broad Front (FA) It does not plan to accompany the merger of the banks, but it would accept the trust. The support of more sectors is clue, since the merger initiative would need a special two-thirds majority in the Parliament.
The merger of banks aroused criticism from various sectors
The project for BHU debtors had been announced by the Senator Germán Coutinho, from the Colorado Party, with government support. However the Minister of Housing and Territorial Planning (MVOT), Raúl Lozano, that he was in favor of the project, he showed against of the merger between banks.
It was also expressed thus President of the BHU, Casilda Echevarría, who maintained that the bank “has the possibility, due to its patrimonial responsibility, to bear the impact” of the initiative, so it could go ahead “without the need to join Banco República”.
About, Gabriel Frugoni, director for the FA, said that the eventual merger would imply a “loss of credibility” for the institution, while warning about the possibility of a “contagion effect” that could result in other debtors not included in the project trying to achieve write-offs for the judicial way.
Source: Ambito
