Argentina Denies Runaway Inflation Subsidizing Loans: Mortgages
05-Jul-2012
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By Liu-Yue (Louie) Lam
A banker turned social entrepreneur. Liu-Yue is currently building and managing two social enterprises to help make the world a better place. Liu-Yue is the Co-founder, CEO, and Chief Investment Strategist at Oxstones Investment Club a global platform that helps facilitate the exchange of ideas on emerging alternative investment opportunities along the new Silk Road (emerging markets). Liu-Yue is also Co-founder and Chief Creative Problem Solver at Cute Brands, Inc. – Cute and Happy with a Cause! Cute Brands is a cause-oriented, character-based brand licensing and brand management company that supports select charities (WWF, WCS, and ASPCA) through consumerism. A NYC native, Liu-Yue worked as an Executive Associate at M&T Bank in the Structured Real Estate Finance Group. Prior to M&T, he held a number of positions in emerging markets bonds and Latin American equities at SBC Warburg Dillon Read (Swiss Bank), OFFITBANK (the wealth management division of Wachovia Bank), and in small cap equities and special situation investing at Steinberg Priest Capital Management (family office). Liu-Yue has a Bachelor of Science in Finance and Marketing from the Stern School of Business at NYU, and an MBA specializing in investment management and strategy from Georgetown University. He also completed graduate studies in international management at the University of Oxford, Trinity College.
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By Camila Russo, Bloomberg,
Argentines are lining up at banks again. This time, they’re leaving with loans.
Veronica Cajal, who wants to move out of her mother’s house, is among 1.4 million Argentines who applied for subsidized home- construction loans in the first week they were offered as part of a program designed to ease a chronic housing shortage and help revive growth in South America’s second-biggest economy.
The plan calls for the national pension agency to lend about 20 billion pesos ($4.4 billion) for new homes at rates as low as one- tenth the pace of consumer-price increases. The government is trying to foster home building as private banks balk at issuing long-term loans amid inflation that economists estimate at 24 percent a year, a legacy of government policies that followed a $95 billion default in 2001, when Argentines queued at banks to buy dollars before a currency devaluation.
The program calls for making 100,000 loans by the end of 2013. Recipients will be chosen randomly from all eligible applications.
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