The real estate industry complains that lack of credit and interest rates that increased from 10% to 21% are preventing housing construction in the country.
According to Andres Salinas, an executive in the real estate sector, when the Honduran Bank for Production and Housing (Banhprovi), gave out loans at rates of 10%, the fees paid by buyers were smaller, but now "there are no funds and banks are granting some at 18.5% and others at up to 21%, there is no capacity," he said.
To support the economic sector of Honduras, Ficohsa Bank is opening new financing options with funds from Banhprovi.
The funds from the Honduran Bank for Production and Housing (Banhprovi) that are available through lines of credit at Ficohsa Bank are designated for urbanization and housing construction projects as well as for the construction of commercial real estate for farming or industrial distribution centers, among others.
Private banking requested $158 million from the Honduran Production and Housing Bank to boost the construction sector and generate jobs.
The requested funds are part of a trust worth $529 million that the Honduran Production and Housing Bank (BNHPROVI) has in order to stimulate the economy.
According to Laprensahn.com, Julio Quintanilla, president of BNHPROVI, said: "The directors of the construction industry are talking about some 300 thousand jobs created through this financial policy that is very favorable in terms of interest rates."
People owning a home can now opt to finance a second home.
Stimulation of the construction industry is sought by making the requirements for accessing the funds of the Banhprovi trust more flexible.
Reynaldo Yanes wrote in Laprensahn.com: "Of the 10 billion Lempiras ($529 million) which the Banhprovi trust has, up to 4 billion ($212 million) will be invested to stimulate the construction industry in both the public and private sectors by way of a rediscount through the banking system."
Of the $212 million total in the Central Bank trust, $23 million have already been handed over between January and February.
Journalist Reynaldo Yanes explained in Laprensahn.com: "Of the $530 million which make up the trust, $212 million belongs to housing sector, urbanization, shopping center and hydroelectric generation projects as reported by the president of Honduran Private Enterprise (COHEP), Alejandro Alvarez.
Ficohsa Bank announced that it will offer loans for projects at a rate of 10% with 7 year terms and a 3 year grace period.
The funds are coming from credit lines with BANHPROVI (Honduran Production and Housing Bank), and are oriented toward the growth of the country’s productive sector.
According to latribuna.hn, appropriations were earmarked for "urbanization and housing construction projects, and the construction of multiple commercial properties," among others.