Following the recent enactment of Law 27,271, the BCRA has issued today a regulation on the expansion of instruments for long-term savings and credit facilities, which increases the chances to access housing and saving, protecting the purchasing power of households across all economic segments.
The BCRA regulation brings about the following changes:
– In line with Law 27,271, which established the housing unit (unidad de vivienda, UVI) as the instrument to adjust loans and deposits in terms of the construction cost index, the BCRA changed the existing UVIs (an instrument of adjustment for inflation (CER)) for units of purchasing power (unidad de valor adquisitivo, UVA). Thus, existing CER-adjustable mortgage-backed loans and time deposits shall change their name from UVI to UVA. The change is limited to the name of the instruments and has no effect whatsoever upon the agreed contractual terms and conditions.
– The new UVI, which shall have an initial value of ARS14.05 (just like the UVA), represents a thousandth part of the average construction cost per square meter on March 31, 2016, and is the simple average of different types of real property located in the cities of Buenos Aires, Córdoba, Rosario, Salta, and the coastal region (Paraná and Santa Fe). It shall be adjusted by the construction cost index (índice del costo de la construcción, ICC) for Greater Buenos Aires published by the National Institute of Statistics and Censuses (Instituto Nacional de Estadísticas y Censos, INDEC) for a model 6 single housing unit. Thus, banks may offer deposits and mortgage-backed loans in UVIs as well as deposits and loans for any purpose in UVAs. The BCRA shall post the value of UVIs and UVAs on its website on a daily basis.
– Additionally, savings accounts for both units are established. Under this new system, depositors may make deposits in UVIs at a minimum 90-day period or in UVAs at a minimum 180-day period. In both cases, once these periods have elapsed, funds will continue to be adjusted by their corresponding indexes until their withdrawal. These savings accounts will be free of charge and banks may pay interest on their balance on top of the adjustment.
– Savings accounts in UVIs may take deposits for underage children through their legal representative. The funds so deposited shall neither be transferred nor disposed of (interest included) until the minor becomes of age. Nevertheless, funds may be transferred to another bank under the same conditions described above.
It should be noted that, since the implementation through BCRA’s Communication A 5945, financial institutions have granted UVA-adjusted mortgage loans for ARS272.9 million and have taken time deposits in UVAs for ARS133 million.
The expansion and regulation of instruments for long-term savings and credit facilities in pesos shall contribute to deepening the financial system—in compliance with one of the key objectives in the BCRA’s administration—thus promoting development with social equality as established by the Charter of the BCRA.
