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Mandatory Credit Portfolio for Housing

Resolution No. 10 issued by the Ministry of the Peoples’ Power for Housing and Habitat (the “Resolution”), was published in Official Gazette No. 40,115 dated February 21, 2013.  The Resolution establishes the financing conditions applicable to the granting of loans for construction, acquisition, self-construction, enlargement and improvements of principal dwellings units, with resources derived from the mandatory credit portfolio for principal dwellings unit matters, which must be complied by the Institution of the Banking Sector on an annual basis.

The Resolution provides that applicants may receive loans with resources derived from the mandatory credit portfolio if their income:

(i)                 Ranges between one (1) minimum monthly salary and fifteen (15) minimum monthly salaries, for cases of acquisition of principal dwelling unit.

(ii)               Does not exceed six (6) minimum monthly salaries, for cases of self-construction, enlargement or improvements of principal dwellings units

Likewise, the Resolution determines that the monthly allocation for payment of loans will not exceed thirty-five percent (35%), nor will it be lower than five percent (5%) of the total monthly family integral income.

On the other hand, the Resolution establishes the following obligations for the Institutions of the Banking Sector, which are authorized to grant the aforementioned loans:

  • To apply the calculation method and the conditions set forth in the resolution that establishes the financing conditions for the resources from the FAOV, in order to apply the Housing Direct Subsidy.
  • To annually request from each debtor the filing of the required documents in order to determine the rate and the allocation to be paid based on the total monthly family integral income.
  • Once the Resolution enters into effect, the loans received and the loans under analysis will be calculated and recalculated in accordance with the methodology provided therein.

Finally, the Resolution entered into effect on the date of its publication in the Official Gazette; and repeals Resolution No. 153, published in Official Gazette No. 39,969 dated July 20, 2012.

In order to access the Resolution, please click here.

 

“NOTE: THIS INFORMATION SHOULD NOT BE CONSTRUED AS LEGAL ADVICE ON ANY SPECIFIC MATTER AND ITS CONTENT ARE INTENDED AS A MANAGEMENT ALERT AS TO CURRENT DEVELOPMENTS IN VENEZUELA, ANY SPECIFIC LEGAL QUESTIONS REGARDING THE POSSIBLE APPLICATION OF NEW OR PROPOSED LEGISLATION TO PARTICULAR SITUATIONS SHOULD BE ADDRESSED TO TRAVIESO EVANS ARRIA RENGEL & PAZ.”