The Argentine government has announced the dissolution of the Public Trust Fund "Pro.Cre.Ar", a program aimed at facilitating access to single-family housing through mortgage loans. This measure aims to redirect resources to areas where the State can be more effective, aligned with Law 27.742 for State reform.
The dissolution of Pro.Cre.Ar represents a significant change in housing policy in Argentina. The measure seeks to allow the banking and real estate sectors to experience an increase in the demand for mortgage loans as access to housing increasingly depends on financial institutions.
President Javier Milei justifies the dissolution of the Pro.Cre.Ar fund by arguing that it represented a significant burden on public finances and that its operations did not meet the expected objectives of transparency and efficiency. The Ministry of Economy will be responsible for carrying out the liquidation of the fund, following the provisions of the decree and existing contracts.
The decree states that the Ministry of Economy will sign a contract with Banco Hipotecario S.A. to ensure the continuity of the management of the loans under the same already agreed conditions. This includes the administration of Pro.Cre.Ar's real estate assets and the possibility of transferring them to provinces, municipalities, and other state agencies if they are no longer in use.
Current beneficiaries of Pro.Cre.Ar have concerns about the future of their mortgage loans. While the government seeks more effective administration and to reduce state intervention, it is expected that the private sector will play a more significant role in access to housing.
Among the issues identified by the General Audit of the Nation are delays in the delivery of homes, habitability problems in the delivered units, and lack of transparency and efficiency. The government believes that the financing of housing construction should mainly be the responsibility of private and public financial institutions, without direct state intervention.
