$20 million in loans will help boost loans for low-and middle-income housing to reduce the gap in the housing market.
La Hipotecaria is to get a funding package of $20 million from the Inter-American Development Bank (IDB) to promote mortgage lending for low and middle income classes in El Salvador, Panama and Colombia.
The financing includes a secured senior credit line, and revolving credit of up to $15 million for the business’ branches in the three countries and partial credit guarantees in local currency to be issued in Colombia for up to 9,500 million pesos (equivalent to U.S. $5 million). Depending on market conditions, La Hipotecaria could raise an additional $10 million through IDB's loan syndication programs.
"There is a significant gap in terms of housing in the region and reducing it is not only a priority for governments and the IBD, but it also represents a great opportunity for the private sector to have greater participation in mortgage lending," said Daniela Carrera-Marquis, head of the Financial Markets Division, Structured Finance Department and Corporate Bank.
Source: Inter-American Development Bank
More on this topic
May 2010
The International Financial Corporation (IFC) injected $3.5 million into La Hipotecaria (Holding) Inc, by purchasing equity.
Panama-based La Hipotecaria is a non-banking financial institution engaging in the generation and securitization of residential and mortgage loans.
August 2011
The International Finance Corporation has granted a loan to Banco General de Panama so that it can offer more mortgages to low-income families.
The $50 million long-term IFC funding , which will run for seven years, will enable Banco General match the maturity needed to finance mortgages for low-income groups.
January 2011
State banks will allocate $ 788 million through programs for all social strata.
Banco de Costa Rica (BCR), Banco Nacional and Bancrédito, have placed more than 20% of their portfolios in this area.
In the case of Banco Nacional, the institution will provide $ 535 million of which $ 347 million will be targeted for families with low and middle income.
November 2011
The Overseas Private Investment Corporation (OPIC) has announced it will provide the loan to help develop a mortgage program in Guatemala.
The program's objective is to develop a platform with the participation of Guatemala's national banks that will make 2,000 mortgages available to families to buy homes that currently might not be able to.
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