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Gov't grants first loans of mortgage lending plan
Buenos Aires Herald
June 20, 2009

The government started granting the first loans of a mortgage lending plan, aiming to boost the construction and real estate sectors and announced it would increase the volume of this year's credits for home buyers.

At the headquarters of Banco Hipotecario in Buenos Aires today, President Cristina Fern ndez de Kirchner led the ceremony to hand over the mortgage loan certificates that were funded by the ANSeS social security agency. The plan offers home buyers up to 20-year, peso-denominated mortgages.

The government holds a majority stake in Banco Hipotecario, which has private management. Deposits from the ANSES will be used to finance the loans.

The head of ANSES, Amado Boudou, praised the results of the government's plan, which he said exceeded the initial expectations. "Seventeen days after the start, now we're granting the first loans," Boudou asserted, noting that the government had already pre-authorized 9,200 mortgages.

"In these seventeen days, we handed over all the entire volume of funds for the 2009 period, hence we have decided to bring forward the fund allocations that were planned for 2010 and 2011, and grant a similar volume of loans in those years," he added.

At the ceremony, Boudou said his agency would use part of the 100 million pesos nationalized from private pensions last year to fund the creation of jobs.

Speaking after Boudou, the President hailed the government intervention in the economy, and said she believe "the articulation of the state and the private sector is a key to preserving jobs" amid a context of economic crisis.

The President meanwhile criticized media reports that showed concern over a 84.8 percent reduction in Argentina's primary surplus in May from the previous year.

"There is a clear (political) intention behind those reports, as they compared a record year (last year) with this year," said Fern ndez de Kirchner, supporting increases in public spending in times of economic crisis.

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