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Too Much Economic Growth Causing Panama to Create Loan Program for Middle Class

Article Summary:

Those in Panama’s middle class making over $1800 will benefit from a preferential home loan rates program backed by the government. Panama’s years of economic achievement have caused the middle class to be squeezed out of the housing market and tighten their purse strings more than any other social-economic level in Panama.

Photo Credit: Revista Summa

Original Article Text From Revista Summa via Google Translate :

Panamanian government will subsidize $ 120,000 homes

Panamanian President Ricardo Martinelli announced that he will soon increase the prime interest housing whose sale price up to $ 120,000. The announcement comes as the president displayed his address in the new ordinary session of the National Assembly.

At the Cabinet Council approved in the presidential announcement on Monday, the professional middle class with a monthly household income above U.S. $ 1,800.

Last year alone the Ministry of Economy and Finance (MEF) had a budget to cover this grant for new homes $ 77 million. This figure is lower than the $ 80.6 million that the State granted this allowance in 2010. Although this benefit last year had a total of U.S. $ 326 million since 2008.

Figures from the Superintendency of Banks of Panama said that until November 2011 the stock of housing loans with preferential law amounted to a total of $ 2426.0 million.

Currently there are three stages in Panama for the first prime rate mortgage for homes whose value does not exceed $ 35,000, the second up to $ 65,000 and the third for households that do not exceed $ 80,000.

Elisa Suarez Gomez, executive director of the National Housing Promoters (Convivienda) expressed optimism after the presidential announcement, because changes are achieved in segments of the prime.

Gomez said that in recent months have been supported with representatives of the Government increased the prices of building materials, the substantial increase in the price of land, besides the factors increases in tax and social security, which have created a process in which, homes 5 years ago could be sold at a price of U.S. $ 80,000 now have a much higher value, close to U.S. $ 120,000 exactly.

Meanwhile, Jose Domingo Arias, head of the Ministry of Housing and Land Management (Miviot) applauded the extension next, but said that details of the subsidy will be provided by the MEF.

Arias said that “the president in his speech referred to the extension of preferential interest mortgage loans benefit those who basically serves the middle class.”

This will facilitate the financing conditions for this sector of society who pay their taxes diligently and had fallen behind the benefits of prime interest because of the real estate market conditions, the official concluded.

Link to Original Article:

From Revista Summa

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