The Central Bank announced this Sunday that UVA loan installments will remain frozen until January 31 of next year.
“The monthly value of the installments in pesos of the credits granted in the Purchasing Value Unit (UVA) will remain unchanged until February 2021 with respect to the one in force as of March of the current year” The entity said in a statement in which it also recalled that Necessity and Urgency Decrees (DNU) 319/2020 and 767/2020 established that UVA-adjustable financing must meet three conditions:
– The installments to be paid by the debtors until February 1, 2021 may not exceed the amount of the installment corresponding to the month of March 2020.
– Debts for differences between the value of the contract installments and those resulting from the freeze established since last March (as a result of decrees 319 and 767) must be refinanced for payment at the end of the life of the loan, “Unless explicitly indicated otherwise by the debtor.” That is, if for any reason the debtor prefers to pay off the credit, he can agree with the respective credit institution to cancel it before the deadlines established by official regulations.
– Debts for non-payment or late payments that could be generated until January 31, 2021 must also be refinanced for payment at the end of the life of the loan. In this case, the BCRA clarified, the entity granting the loan may apply compensatory interest, but these may not exceed the interest rate of the original loan. In addition, all the differences generated during the freezing of the installments, non-payment or late payments, will maintain their denomination in UVA and pass at the end of the period.
Debts due to differences in value between contractual installments and frozen installments must be refinanced at the end of the life of the loan, as well as those derived from non-payment or full-term payments, on which banks may charge compensatory interest that does not exceed the original credit rate
The Central Bank recalled that banks must apply these principles and alerted users that they can make their claims before the “Responsible for attention to the user of financial services” of the entity involved. The contact details to do so are at the following address: www.bcra.gob.ar/BCRAyVos/Responsables_en.asp
If in this way the debtor does not get a response or the one he receives does not seem satisfactory, he can present his claim through the Financial User Protection area of the Central Bank itself. To do this you must enter www.bcra.gob.ar/BCRAyVos/Reclamos-no-resueltos.asp
History of UVA
UVA (Acquisition Value Unit) credits were launched in 2016, in the government of Mauricio Macri, during the management of Federico Sturzenegger at the head of the Central Bank: the idea was to allow access to their own home, priced in dollars, through a loan in pesos whose installment was less than the rental value of a similar home. The line had a boom during 2017 but debtors began to have problems after the devaluation episodes and inflation jump that followed one another as of April 2018. Although the acquired good also increased in value, the sharp increase in the quota began to collide with the evolution of their income.
Recently, Infobae consulted several experts on the advisability or not of canceling this type of credit. “” If it is a loan that is adjusted by UVA, it seems good to cancel, although I would not rush to do it because the inflation adjustment warns you; you are seeing how your quota adjusts every month, in advance “, he said Fernando Baer, from the consulting firm Quantum.
While, Gabriel Caamano de Ecoledesma pointed out that “if the person believes the (exchange rate) gap has reached its maximum, it would make sense to pre-cancel, because inflation goes more with the official dollar, although not necessarily at par. And the UVA follows inflation ”. But if instead the exchange gap is closed “the hard way” (that is, with a devaluation of the official exchange rate), the result would be different.
Matías Carugati de Seido said in turn that “if you are a debtor of a loan that is adjusted by UVA, you can bet that they will save you or you can ensure a solution if you have the dollars. You have to see how much risk the person tolerates ”.
It should also be taken into account that prepaying a mortgage loan has a short-term financial cost; in some entities a commission of 3% plus VAT is charged, if less than 180 days have elapsed since the credit was granted or less than 25% of the term has elapsed; of both options, the greater is chosen.
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