Restrictions on mortgage loans

The foreign currency “clamp” implemented by the national government a year ago is now in effect on mortgage loans, according to Central Bank regulation announced last July.

The monetary rule, announced on July 5 through communiqué A 5318 — which officially prohibited the purchase of foreign currency for saving — states that those who received mortgage loans are now unable to use the pesos from the loans to purchase dollars, in order to buy a house in the foreign currency.

According to the regulation’s deadline, the prohibition became effective yesterday, with those who have made agreements in advance to purchase dollars having until October 31 to complete their operations.

The regulation becomes active in the middle of a real estate crisis, with activity severely affected by foreign currency exchange restrictions, implemented by the national government.

Buenos Aires province notary officials announced on Wednesday that real estate transactions fell by 22 percent from January to September, in comparison to figures from 2011. There were 9,739 registered sales in September 2012, while in the same period last year there were 12,559 sales.

— Herald with DyN