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Mortgage Loans for Principal Dwelling Units

Resolution No. 16 issued by the Ministry of the Peoples’ Power for Housing and Habitat (the “Resolution”) was published in Official Gazette No. 40,109 of February 13, 2013.  The Resolution provides that Institutions of the Banking Sector, which are obliged to grant mortgage loans for purposes of construction, acquisition, enlargement, improvements and self-construction of principal dwellings units, must place from their own resources at least twenty percent (20%) of the annual gross credit portfolio.  The Institutions of the Banking Sector shall distribute the resulting amount of the aforementioned percentage, as set forth in the provisions contained in the Resolution.

 

The Resolution provides that, upon the expiration of the period of time for the transfer determined by the Superior Entity of the National System of Dwelling Units and Habitat, the National Bank of Dwelling Units and Habitat (“BANAVIH”) will evaluate the compliance with the mandatory credit portfolio by the Institutions of the Banking Sector.  Additionally, the Institutions of the Banking Sector must file with BANAVIH a monthly report about the compliance with the mandatory mortgage loan, within the first five (5) business days of each month.

 

The Resolution repealed Resolution No. 050, dated on March 23, 2012, published in Official Gazette No. 39,890 of the same date.

 

The Resolution became effective as of the date of its publication in the Official Gazette.

 

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.”