Construction sector and announcement of financing with BancoEstado: other institutions are asked to join and more details
  • Post author:
  • Post category:News
  • Post comments:0 Comments

The preparations that the ministries of Housing, Finance and Economy are currently preparing together with BancoEstado regarding a special line of financing for the construction sector, have generated different reactions from the industry.

This day, the president of the Chilean Chamber of Construction (CChC), Juan Armando Vicuña, referred to the issue and despite appreciating the efforts of the productive sectors “to reactivate the country’s economy,” said that from the union they believe it is necessary that other actors, in addition to the entity chaired by Jessica López, join this initiative.

“We have said that it is necessary for the financial system to also join in and make an effort in this regard. We are not facing a structural crisis, so We request that the banks examine the situation of each of the companies on a case-by-case basis,” the businessman maintained.

And he added that despite the fact that the CChC celebrates that there are “some lights of a new line of financing”, they believe that “measures like these should be replicated by more institutions.”

For his part, the lawyer Óscar Gajardo, an expert in regulatory affairs and founding partner of the Cuadra Gajardo law firm, commented that in his opinion, these measures “clearly would be important if there were housing availability and there was real access to mortgage credit. But reality shows that fewer and fewer people are eligible for credit”.

According to the lawyer, the measures announced by Minister Montes do not face “the urgency that has led construction companies to the current crisis, which is mainly due to the increase in the costs of projects underway and the difficulty of accessing bank financing”. And in addition to the financial restrictions imposed by banks on companies, the expert points to the “delay in payment by the State institutions themselves”.

“This leads companies to have to face the delay in the Payment Statement with their own resources, either due to lack of a budget decree or excessive bureaucracy,” he says.

And with regard to the possibility of materializing this line of financing from a bill, Gajardo maintains that in the midst of a crisis in the field of the construction industry, entering into a long-term process could imply that “once again the State will be late”.

“Important measures must be adopted and also urgently, such as improve and make access to FOGAPE financing more flexible and price readjustment measures, as carried out by the Ministry of Public Works. Only urgent measures will allow a breather to be given to an area that has historically been important in times when economic reactivation is required,” he said.

Meanwhile, Mario Álvarez, president of the Association of Social Housing Developers (ADVS), highlighted the initiative and said that from the union They think “the effort of the Minvu to specify measures for the construction sector is positive, but it is important to know its scope and that it can be implemented quickly”.

“The lack of financing that we are seeing in social housing projects is a brake on the start of construction that must be solved as soon as possible. It is urgent to deliver certainties and solutions in this area if we want to meet the objective of delivering 260,000 homes to 2025,” he said.

Leave a Reply