Cristina Fernandez, President of Argentina, would receive it. In the last eight months, Fernandez has been chastised for restricting citizen spending of US dollars in Argentina. His latest carrot-on-a-stick strategy is a pledge to construct 400,000 low-cost homes in an attempt to eradicate many slum districts. properties for sale in qatar
Many slums surround Argentina's capital, Buenos Aires, in the vast province of Buenos Aires. The housing initiative is divisive because Fernandez intends to use pension and treasury funds to offer nearly-free housing loans to 400,000 people who have been on a government mortgage waiting list for years.
According to Fernandez, her administration is moving forward with the housing plan now because it believes that the best way for Argentina to defend itself from the current financial crisis in Europe is to generate domestic demand, new growth, and production.
Loans with a maximum amount of $77,000 will be accessible. Interest rates will range from 2% to 14%, depending on the applicant's net worth. The loans will have a 20-year or 30-year repayment period. ProCreate is the name of the software.
Residents who have been unable to secure privately funded home mortgages are targeted by the initiative.
Anyone between the ages of 18 and 65 can borrow up to 40% of their monthly income. Since Argentine inflation often exceeds 2% per month, the loans will effectively be free money for the working poor.
Applicants who are looking to build on their own land will get the loans right away. Those who do not have land or loans and receive less than $1,100 per month will be selected for state-owned plots via a national lottery scheme.
Critics of the housing initiative warn that if the plan is implemented, new waves of corruption will emerge. In response to this issue, Argentina's Supreme Court has given the pension agency, ANSES, 30 days to clarify where the retirement funds are being spent in detail. Thousands of retirees in Argentina have received court decisions for unpaid benefits, but they have yet to receive their funds.
Critics also argue that the policy would be more efficient and straightforward if it had been introduced to Congress rather than enacted by the president using his emergency decree powers.
Argentina's economy is slowing ten years after it devalued its currency and defaulted on loans from foreign investors. Economists in Argentina have reduced their growth forecasts and expect a recession.
Tax avoidance is widespread. The United States' currency is leaving the country. International investment is almost non-existent.
Argentina is a country in South America. Construction and real estate markets are in free fall as the government fights locals' use of the US dollar to close deals.
There's a lot of trouble in River City these days, which is Argentina.
President Cristina Kirchner is cracking down on real estate buyers and sellers, as well as players in the building industry, who use US dollars to close deals. They're taking money out of their savings accounts at the bank. That is the problem.
Kirchner wants the transactions to be completed in Argentine pesos. She claims she wants the money to pay off foreign debts owed by different countries. At the moment, 4.50 pesos equals $1 US. Hustlers in the country's black markets are demanding for 6 pesos for a dollar.
Rumors of a government-imposed or unofficial freeze on bank deposits continue to frustrate Argentines and stymie the real estate and building markets.
Kirchner has been attempting to reduce the use of US dollars in the domestic market for the past eight months.
Since President Kirchner introduced exchange controls on Oct. 31, 2011, around $3.98 billion in foreign currency deposits, mostly dollars, had left the banking system, according to the Central Bank of Argentina.
Between May 1 and May 24, depositors withdrew $1.14 billion. For the week ending June 1, the Central Bank expects outflows of about $500 million.
According to analysts, the loss of dollar deposits isn't a major concern for banks since they account for less than 15% of their overall deposit base. However, according to Reuters, the lack of deposits would make export funding more costly and has drained the central bank's foreign reserves.
Kirchner's fight against the dollar has put a halt to real estate and building development. They are two of the most important growth engines in the world. The shutdown may be as serious as the economic downturn of 2001-2002.
For years, Argentines have paid for their homes in US dollars because they have no faith in the peso's value. They're also put off by 20-year mortgage loan rates of 20% or more a year.
As a result, today's dollar buyers are seeking steep price reductions from developers, many of whom are making the offers because they are unable to repay their bank loans.
A major economic depression a decade ago, as well as high inflation in the late 1980s, harmed savers and homebuyers significantly. For longer-term financial planning, they consider the dollar to be a better option than the peso.
According to analysts in Buenos Aires, Argentina's capital and most aggressive real estate centre, the situation is expected to worsen in the coming months, according to the Argentine Real Estate Chamber.
A small apartment in a middle-class neighborhood in Buenos Aires, for example, would cost about $100,000. Luxury homes in the city's more affluent neighborhoods start at $1 million.
According to Reuters, the number of closed property deals in Buenos Aires dropped 30% year on year in May to 5,600. The number of contracts traded dropped by 22% in April.
Argentina's gross domestic product is dominated by construction, which accounts for around 15% of the country's total production (GDP). According to the most recent official figures, construction activity dropped 5.9% in April compared to March.
Despite this, the government expects growth to be 5.1 percent this year, down from 8.9 percent the previous year. Independent observers believe the government's figures are exaggerated.
According to the Buenos Aires Herald, at least three government offices are working on bills or resolutions to make the US dollar the country's primary currency for debt repayment.
According to the newspaper, they are advocating for the abolition of the Convertibility Law article (currently in effect), which allows for the payment of obligations in US dollars.