Federico Sturzenegger explained why UVA mortgage loans are convenient

Federico Sturzeneggerwho was the one who launched the UVA credits in Argentina, advanced his opinion on the new mortgage credit lines that came onto the market in the last week. Pointedly, he said: “It blew my mind and I think it will be a before and after” when referring to the new product launched by Banco Ciudad.

Sturzenegger is the intellectual author of President Javier Milei’s DNU that came into force on December 29, 2023 and allowed to repeal the rental lawgenerating a rebound effect in the rental market, multiplying the supply of properties in a few months and lowering publication prices.

“The UVA credit works because it does not require the capital update due to inflation to be included in the installment. This lowers the initial payments (uploads the finals) making credit accessible. When the (Banco) Nación issued a 3.5% rate, the fee was cheaper than rent,” he said on the social network X (formerly Twitter).

“Unfortunately, a lot of confusion,” he continued and pointed against the former president of the Bank of the Argentine Nation, Carlos Melconian, and against the economist Roberto Cachanosky: “People who confuse the nominal fee with the real one (sorry @CarlosMelconian) or who thinks it’s playing Russian roulette (sorry @RCachanosky). But the truth is that capital in real value is always reducing.”

“Between In 2016 and 2017, some 150,000 families accessed their homes thanks to UVA credits. It was the most successful housing policy in decades. There was no default and look, things have happened in Argentina since then,” he added in his X account.

“UVA credits were attacked primarily by the Hipotecados UVA collective. I think they wanted to see if society paid their debts. But today all that selfish criticism helps. Whoever takes out a UVA loan will be more aware of the financial contract they are entering into“, said.

UVA credits: the role of inflation

Later, Sturzenegger refers to the role that inflation and the rent law played in the performance of the UVA mortgage loans that began to be granted during his administration: “The ineffable Alberto Fernández also comes into play. Bringing inflation to 200% and worsening the rental law, It demolished the supply of rents that increased skyrocketingly. Yese consolidated the idea that a mortgage loan with adjustable capital was better than a rental,” and adds: “Ah, another encouraging thing. The Central Bank defended the financial instrument throughout this period, thereby “was able to survive the dark time of Kirchnerism almost intact.”

Sturzenegger He alluded to how new banks were speaking out in the offer of mortgage loans last week and to Javier Milei’s role in that possibility: “The fiscal surplus returns resources to the private sector and credit immediately reappears.”

“More banks will join in. Why place silver at UVA at a negative rate in bonds if you can place UVA at a positive rate in a credit instrument without default. When this portfolio grows it will allow us to offer deposits protected from inflation. Then our financial system,” he added.

rentals real estate mortgage loans

Sturzenegger alluded to how new banks were speaking out in the offer of mortgage loans last week and to the role of Javier Milei

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UVA credits: an advance for young people

Finally, he alluded to a proposal that it seems that Banco Ciudad will announce, aimed especially at young people: “But nothing compares to what they told me today at Banco Ciudad. They are going to allow young couples to take it out with a guarantee from their parents This way young people will be able to buy their house instead of renting, even if they do not have the necessary salaries to pay. the required quota-income relationship”.

“I imagine the demand for this product is immeasurable. It will allow young Argentine couples to start their adult lives by buying their house. Parents will only act as guarantors. A normal country. Wonders of the fiscal surplus! “VLLC!”he finished.