The pro-government senators and the Ministry of Economy and Finance (MEF) They finish polishing the bill that proposes the refinancing of debts in Resettable Units (UR) of the Mortgage Bank of Uruguay (BHU) —for the already famous debtors in UR or “hostages”, as they define themselves—with the aim of being able to enter the text in the Parliament next October 3 and begin the debate on the initiative.
The objective is to reach a project that allows its relatively quick approval in both Chambers, so the efforts of the ruling party are focused on drafting two parts that are independent of each other, instead of a single block as was proposed in the original idea of The nationalists Sergio Botana and Carlos Camy, and the red German Coutinho —those who worked on the initial proposal.
In this way, the initiative that would enter Parliament at the beginning of October would, on the one hand, have the refinancing of the debts in UR of both the BHU and the National Housing Agency (ANV); and, on the other, the fusion between the banking entity in question and the Republic Bank (BROU).
The main reason is that both the Wide Front as Town meeting They have already advanced their rejection of the idea that both banks merge – and that the BHU disappears to become a new entity within the BROU under the name “Mortgage credits”. Therefore, there is no possibility that the government will reach the special majority necessary to give the green light to the operation—despite the fact that the government continues to defend this resolution path.
Generating two independent or “disconnectable” projects means that the numerical obstacle that, most likely, will occur regarding the merger, does not imply that the solution for the more than 20,000 debtors in UR will not be approved either:
For and against
Although the merger gathers mostly negative opinions, the refinancing of BHU’s debts seems headed in a positive general agreementso the project will enter Parliament on October 3 to be discussed first in the Housing Commission integrated with the Treasury. This first stage would last two weeks, so it would be voted on on October 17, to finish being discussed in the Senate plenary session on the 18th.
From Cabildo Abierto, as the Minister of Housing and Territorial Planning (MVOT), Raúl Lozano —which was part of the original group that worked on drafting the project while it was a member of the Upper House—, accompany the refinancing initiative. This position is also shared by the Frente Amplio, which will also seek to influence the writing with own proposals.
In that sense, one of them will be that not only the “age” of the debt is taken into account – the project establishes staggered solutions starting 40 years from when the mortgage loan was taken – but also other criteria as “the value of real estate.” It will also demand that a “compensation” of the Executive Branch towards the BHU for waiving the collection of fees or interest that are an asset in its portfolio.
Meanwhile, in the opposition and in groups of economists there is concern about a possible consequence of refinancing of debts in UR: the “contagion effect”. That is, other debtors in the country begin to request the same treatment as those of the BHU and the ANV. The general conclusion is that it is “unfair” make the reductions proposed by “it is not true that debtors in UR were harmed”: “It is unfair to good payers. It is inconvenient because it generates uncertainty in the credit business,” he said Pablo Roselli, consultant and partner Exante.
For its part, Gabriel Oddone, partner of CPA Ferrere, He agreed that “it costs a lot of money and will limit credit, especially for lower-income people.” “In the (not so distant) past, initiatives of this type severely compromised Public finances”, he added.
Meanwhile, the government estimates a minimum cost of $330 million for absorbing BHU’s UR debts; and 260 million dollars for debts in the ANV — which the banking entity would also assume.
Source: Ambito
