Plan will broaden housing loans for the emerging middle class and finance developers of multi-family projects
Paraguay will facilitate financing for construction and access to housing with the help of a $30 million loan approved by the Inter-American Development Bank (IDB).
The project's specific goals are to boost access to housing for families that earn up to seven times the minimum wage by providing loans and increase the supply of housing through financing to real estate developers.
The plan will channel resources to eligible intermediary financial institutions through the Financial Development Agency so as to broaden access to mortgage and non-mortgage credit to the emerging middle class. It will also provide credit to developers of multi-family residences, thus helping to ease Paraguay's shortage of housing.
The results expected from the plan include an increase in the number of families with access to mortgage financing for home purchases and upgrades and a boost both in the number of homes built through credit to developers and the number constructed in metropolitan Asunción with resources from this project.
The $30 million IDB loan is over 25 years with a grace period of five-and-a-half years and an interest rate pegged to the LIBOR.
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The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source o flong-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.