UVA credits: MPs will try to agree on a “rescue” law for those who have mortgages

There National Chamber of Deputies convened this Wednesday two important activities for the one hundred and five thousand takers of the UVA Mortgages launched in 2016 with the aim of acquiring family homes.

The first will be a plenary of committees, scheduled for 12, during which the different parliamentary blocs will try to unify a common project. The second is scheduled two hours later, at 2:00 p.m., already on site, when the special session asked by the deputy for Mendoza Julio Cobosto discuss his father’s project on the subject.

In principle, the Cobos project has 36 elements which are the result of the claims of a group of lessees in the province of Mendozawho, like the rest of the country, have been devastated by the way the system UVA establishes the quota update. After a long process, it materialized in the bill which will trigger the discussion this Wednesday.

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Although the different political forces pursue the same objective, that of easing the burden of debtors, there are nuances between the different proposals. These differences will try to be settled during the plenary session which will take place before the session.

Both activities were included in the parliamentary agenda officially communicated by the Chamber of Deputies. The noon plenary will take place at noon in Annex C, located on the second floor of the building opposite the Legislative Palace, Rivadavia Street.

The central claim of the takers of this line of credit, born under the presidency of Mauricio Macri, it focuses on how the amount payable for credit installments is updated. The mechanism takes as a reference the index REC (Reference stabilization coefficient), whose fundamental data to define the new amount is the Consumer price index (CPI) which measures the INDEC. That is, the rate of inflation.

Likewise, this indicator defines the amount of total debt, so that the capital taken initially is increasing by the calculation.

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The difference between the evolution of installments to be paid and the updating of wages is what has caused credit borrowers to consider the initial debt with which they found themselves after several years with high inflation rates as disproportionate.

The project that Cobos will bring instead offers some options to moderate the outcome of the original equation. First, it establishes for each mortgagor the possibility of renegotiate the one-off contract with the bank that granted the credit. In 47% of cases, the mortgage loan was granted by the National Bank.

This renegotiation implies the possibility of a change of regime, that is to say the possibility of passing from the value UVA at the table UVIwhich limits interest calculated on the debt to 5%.

However, self-convened groups of loan takers argue that this does not represent a substantial variation of the problem since the CPI continues to be the basis of the calculation. Since it has been a constant that the wages evolve behind inflation in recent years, they have proposed that the maturity of the credit be calculated with the Salary variation coefficient (CVS).

On the other hand, the project of the radical deputy of the province of Mendoza, former vice-president during the period 2007-2011, establishes the suspension of evictions and seizures of credit for a period of one year.

Similarly, it provides for the creation of a trust whose objective would be to “stabilize” the value of the quotas, in the event that the increase exceeds the evolution of wages by 10%.

Despite long-expressed concerns from borrowers, efforts to comply with payment have produced low delinquency rates. A report of central bank of 2022 indicates that only 1.6% of the mortgaged presented irregularities in the execution of their commitments.

However, the active demands of citizens who raise the gap have installed the issue on the parliamentary agenda during the last periods of ordinary sessions.

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