Mortgage credit dilemma: Banks struggle to lend for 20-30 years with 30-day deposits

In Argentina's ongoing efforts to revitalize its real estate and construction sectors, a critical discussion has emerged around the lack of long-term mortgage financing. Prominent economists like Martín Redrado and Miguel Kiguel are advocating for the strategic use of the Fondo de Garantía de Sustentabilidad (FGS) of Anses, a substantial fund holding approximately US$70 billion in assets. They contend that without accessible mortgage credit, particularly loans with 20 to 30-year terms, the middle class remains excluded from homeownership, hindering social justice and suppressing demand for construction – a key job creator. The proposal suggests reorienting FGS resources towards productive investments, such as purchasing mortgage portfolios or financing private projects, thereby activating a virtuous economic cycle. This approach, they argue, could provide the necessary impetus for economic growth without exacerbating the fiscal deficit, offering a creative solution to a persistent challenge in the Argentine economy.

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