Hypothecary   REAL ESTATE MORTGAGE LOANS BANKS
Hypothecary crediting (mortgage) in Latin America most actively develops in Argentina, Brazil, Mexico, Bolivia, Chile, Peru, Uruguay and a number of other countries. Distinctive features of the housing market in Latin America are: insignificant private investments into housing sector; the insignificant sums of the credit; concentration of hypothecary crediting on families with the income above an average; the limited availability of hypothecary crediting to families with the small income.

In Argentina the effective scheme of hypothecary crediting is realised by means of the World bank, informs IPOTEKA.NET.UA.

The generalised kind of the scheme looks as follows: the government creates guarantee fund for the bonds (promissory notes) emitted by banks-participants of the project. The world bank for fund creation grants a 15-year-old loan (including a 7-year-old delay of payment) for the sum 500 mln. dollars the Fund gives out guarantees under the securities emitted by subjects of the hypothecary market, a guarantee under shares of participation in pools of hypothecary credits of savings and loan associations. A payment for a guarantee — 5 % from the credit sum. Certificates of shares have the uniform standard and are nominated to currency of the credit of the World bank. The guarantee fund is created to redeem the bonds let out by them at project banks-participants in case banks do not have possibility to support their course in view of recession in the market. Calculation with fund is made in all cases when banks decide to exercise the right, fixed in the agreement with fund, to sell to it the securities.

Banks-participants emit nominated to an US dollar exchange rate, the bond to accumulate money resources for: crediting of investment projects (in area both industrial, and housing construction). The emitter in coordination with the guarantor (fund) can choose a kind of emitted bonds.

Distinctive features of the housing market in Latin America are:

• insignificant private investments into housing sector;

• the insignificant sums of the credit, only in few countries the credit sum exceeds 30 % of cost of apartment;

• concentration of hypothecary crediting on families with the income above an average;

• the limited availability of hypothecary crediting to families with the small income, impossibility of granting by them of guarantees and documentary acknowledgement of incomes (often received it is permanent).

In the countries of Latin America exists three kinds of hypothecary credit products:

1. The credits which are given out in US dollars;

2. Credits with the swimming credit rates adhered to a concrete local index;

3. The credit in national currency with the fixed rate (this category of credit because of high fluctuations in the financial markets and the raised risk of inflation connected with it now practically is not used).