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🇻🇪 Venezuela /Economy & Trade

Experts Propose Stock Market Solutions for Venezuela's Housing Crisis

From El Nacional · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Official statement Ongoing story
  • Experts propose financial instruments on the Caracas Stock Exchange to fund housing construction.
  • The initiative aims to address the housing crisis following the June 24 earthquakes.
  • Proposals include structuring investment funds and leveraging the Venezuelan Real Estate Chamber as an investment vehicle.

Experts are proposing the creation of financial instruments on the Caracas Stock Exchange to fund housing construction and tackle the crisis exacerbated by the June 24 earthquakes. Representatives from the Caracas Stock Exchange, the United Nations Development Programme (UNDP), the Real Estate Chamber, and the Securities Superintendency are collaborating on these proposals.

connect the capital with the needs of the real estate developers

— José Grasso VecchioPresident of the Caracas Stock Exchange, on the commitment of capital market sectors to address housing needs.

Private expert meetings, organized by the Caracas Stock Exchange, have assessed the real estate and housing construction sectors. These forums aim to "realign financial proposals to boost housing development," according to a press release from the exchange. José Grasso Vecchio, president of the Caracas Stock Exchange, stated that the capital and stock market sectors are committed to "connecting capital with the needs of real estate developers."

Vecchio suggested exploring "sustainable finance alternatives to address the housing emergency," including structuring investment funds specifically for these activities. He believes this mechanism will facilitate access to national and foreign resources. Preliminary estimates indicate a massive need for housing for families affected by the earthquakes. The UNDP estimates that damages could reach $6.7 billion, equivalent to 6% of Venezuela's GDP, though the World Bank calculates damages at $19.6 billion.

sustainable finance alternatives to address the housing emergency

— José Grasso VecchioSuggesting mechanisms for funding housing reconstruction.

The UNDP also reported that eight million people are affected by the earthquakes, with 18,000 displaced and 2.1 million tons of debris in devastated areas. Pablo González, president of the Venezuelan Real Estate Chamber, presented a diagnosis of the real estate market, noting that the chamber is developing a legal framework to reactivate the sector. He added that the chamber has the structure, regulated by the Venezuelan state, to transform into an investment fund capable of qualifying projects for commercialization through stock market instruments.

realign financial proposals to boost housing development

— Caracas Stock ExchangeDescribing the objective of expert meetings on housing finance.
DistantNews Editorial

Originally published by El Nacional in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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