The President of Argentina, Cristina Fernandez, would receive it. Fernandez has been criticized throughout the previous eight months for limiting US funds to citizen expenditure in Argentina. His new carrot-on-a-stick approach promises to build 400,000 low-cost houses to eliminate several areas of the slum.
Many slums surround the capital city of Argentina, Buenos Aires, in Buenos Aires' enormous province. The housing project is split as Fernandez wants to utilize pension and treasury money to provide 400,000 persons on a government mortgage waiting list almost free home loans. copany
Fernandez said her administration is now going ahead with the Housing Plan because she believes Argentina's greatest defense against the present European financial crisis is to stimulate local demand, fresh development and production.
Loans of up to $77,000 will be available. The interest rates will vary from 2% to 14%, depending on the net value of the applicant. The loans will have a payback term of 20 years or 30 years. ProCreate is the program name.
The project targets residents who were unable to acquire private house mortgages.
Everyone between 18 and 65 years of age can borrow up to 40% of their monthly salary. Because Argentina's inflation typically surpasses 2% each month, the loans are free money for the poor working.
Applicants who want to construct on their own land will receive the financing immediately. Those who do not have land or loans and receive less than $1,100 per month are picked through a nationwide lottery system for state-owned plots.
Critics of the housing program worry that fresh waves of corruption would arise if the plan is executed. In answer to this question, the Supreme Court of Argentina has granted ANSES 30 days to the pension agency to clarify the details of the retirement funds. Thousands of pensioners have obtained court rulings on underpaid pensions in Argentina, but have not yet received their cash.
Critics also say that if a policy were submitted to the Congress, instead of implemented by the President using his emergency decree powers, it would be efficient and clear.
Argentina's economy slows 10 years after its currency has depreciated and foreign investor credit defaults. Argentina's economists have cut their growth predictions and anticipate a recession.
Tax evasion is common. The money of the United States is fleeing the nation. Investment international is nearly non-existent.
Argentina is a South American nation. Building and real estate markets fall free as the authorities battle to seal transactions using the US dollar.
There's a lot of problems nowadays in River City, Argentina.
President Cristina Kirchner attacks property purchasers and sellers and actors in the construction sector who utilize US currency to conclude transactions. They take money from the bank's savings accounts. That's the issue.
Kirchner wants the deals in Argentine pesos to be completed. She argues that she wants money to pay off external obligations due by several governments. Currently, 4.50 pesos is $1 USD. The illicit marketplaces in the nation are demanding 6 pesos per dollar.
Rumors of government-imposed or unofficial freezing of bank deposits continue to thwart Argentina's property and construction markets.
Kirchner has been trying over the past eight months to decrease the usage of US dollars on the local market.
The Central Bank of Argentina claims that since President Kirchner implemented exchange restrictions on 31 October 2011, about $3.98 billion in foreign currency deposits, primarily dollars, have left the banking sector.
Depositors withdrew $1.14 billion between 1 May and 24 May. The Central Bank estimates outflows of around $500 million for the week ending June 1.
The loss of dollar deposits is not an important worry for banks, according to experts, since it represents less than 15 percent of the total deposit base of banks. However, Reuters says that a shortage of deposits would make export financing more expensive and has eroded foreign reserves of the central bank.
Kirchner's struggle against the dollar stopped the growth of property and buildings. They are two of the world's leading growth engines. The closure can be as severe as the 2001-2002 economic slump.
For years, Argentinas paid US dollars for their homes because they have no trust in the value of the peso. They are also postponed with a mortgage loan rate of 20 percent or more every year for 20 years.
As a result, dollar buyers today demand substantial price reductions from developers, many of whom make bids because they cannot pay back their bank loans.
A decade ago, a big economic slump and rising inflation in the late 1980s had seriously damaged savers and homeowners. They perceive the dollar to be a better alternative than the peso for long-term financial planning.
According to the Argentinean Real Estate Chamber, analysts at Buenos Aires, the capital of Argentina and the most competitive real estate center, the situation is likely to worsen in the coming months.
For instance, a modest apartment in Buenos Aires' middle class area would cost around $100,000. Luxury houses start at $1 million in the city's most wealthy districts.
The number of finalized land transactions in Buenos Aires decreased by 30 percent year on year in May to 5,600, according to Reuters. In April, the amount of contracts exchanged decreased by 22 percent.
The gross domestic product of Argentina is dominated by construction, which accounts for around 15% of overall production in the country (GDP). Building activities decreased 5.9 percent in April, compared with March, according to the most current official statistics.
Nevertheless, the government forecasts growth this year to be 5.1 percent lower than last year's 8.9 percent. The government numbers are inflated by independent observers.
The Buenos Aires Herald states that at least three government departments are working on legislation or resolutions to turn the US dollar as the country's main debt repayment currency.
According to the publication, they advocate the removal of the item on the convertibility law (already in effect), which enables payment of bonds in US dollars.