El Salvador: Subsidies Proposed for New Homes
The project by the Construction Chamber is a subsidy on interest rates for new home purchases with a value not to exceed $63,000.
Monday, March 2, 2009
La Prensa Grafica published on its website: "'CASALCO (Salvadoran Construction Industry Chamber) has taken a law which is in effect in Panama as a model. The proposal is for financial institutions to grant a subsidy on mortgage loans for individuals through interest rates. When we saw the problems we were facing in long-term financing given bank tightening, we spoke to people in Panama and it clicked. The decision was made to work on a Salvadoran law proposal to be submitted (to the Legislative Assembly) after the presidential elections,' said Ismael Nolasco, executive director of CASALCO."
The group proposes that housing and public works be reactivated in order to face the crisis and revive the economy.
Businessmen from various sectors are demanding regulation by the government of several existing laws, which allow for different interpretations and legal uncertainty.
In the absence financing solutions, the construction union sector initiated meetings with private banks.
Ismael Nolasco, general manager of the Chamber, reported that the group is negotiating financing as a alternative fund for the reactivation of the sector.
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