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Latin America Investment News on Viva Tropical

Honduran Home Buyers Make Massive Withdrawal of Down Payments

Article Summary:

Honduran home buyers are making massive withdrawals of their down payments, as the rise in interest rates, lack of resources in the Honduran Banking system, along with the delay in the process of continued funding, have all forced customers to op-out of home purchases.

Photo Credit: El Heraldo

Original Article Text From El Heraldo via Google Translate :

Honduras eported massive withdrawal of premiums for house purchase

The rise in interest rates and the lack of resources in the Honduran Bank for Production and Housing (Banhprovi), “generated a massive withdrawal of premiums paid to purchase housing.” The information provided President of the Honduran Chamber of Construction Industry (Chico), Alejandro Alvarez, at the end of a meeting with representatives of the major real estate companies in the country.

According to Alvarez, has yet to provide Banhprovi rediscount lempiras 2,000 million to finance social housing and middle class. The prime rate that is provided with these resources amounts to 9%. “This situation is comparable to that offered us a mud brick lempira when stocks are over,” he said.

Due to the delay in the process of continued funding, customers opted to withdraw the premiums paid to purchase a home. According to Alvarez, this issue has been addressed from the dome of the Honduran Council of Private Enterprise (Cohep) and Banhprovi authorities to find a solution to the demand for resources millionaire “repressed”.

Some banks, for their part, offer home loans at a rate of 17%, up eight points to Banhprovi provided with resources. Project developers displayed, Alvarez continued, that in the very short term paralyze their condominiums, housing projects and office buildings by lack of resources.

Moreover, the leader regretted that the Central Bank of Honduras (BCH) rose at one point the policy rate and this led to the rise of money. “We see so unfortunate that these situations due to a lack of interest generated by some banks to finance housing projects,” said the president of the Chico.

According to the BCH, the Monthly Economic Activity Index (MIEA) to June 2012 indicates that the construction industry showed an increase of 11.2% in the first six months of 2012, due to the greater number of works in the commercial sector and industrial and to a lesser extent in the residential.

It highlights the progress in the execution of works of a commercial in the Central District, residential cities of El Progreso and Choluteca, and industry in San Pedro Sula.

No bonds Alvarez also revealed that there is concern among the public works construction companies, which are owed about 270 million lempiras. “Last Saturday we met with them to address the issue of outstanding debt and learned that the government will not honor its commitments or bond.”

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From El Heraldo

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