Conavi Participates in Mexican Housing Day Conference
-- 'Mexican Housing Day' presented to more than 300 analysts and investors in New York after a successful gathering in London
-- Investors show their interest in Mexico's housing sector and mortgage system
MEXICO CITY, Feb. 9 /PRNewswire/ -- During the 7th Edition of "Mexican Housing Day," more than 300 investors and analysts are taking part in the conference which presents an overview of Mexico's housing sector.
Featured among the presenters are Mexico's Secretary of the Treasury Ernesto Cordero, the president of the Bolsa Mexicana de Valores (Mexican securities exchange) Luis Tellez, and the directors of Conavi, Infonavit, SHF and FOVISSSTE.
During his presentation, the Secretary of the Treasury noted that:
-- Public sector fostered investment represented 5% of GDP (the highest figure of the decade).
-- Banobras expanded its credit by 26 billion pesos, a 25% increase.
-- The National Infraestructure Fund promoted 21 billion pesos in investments.
-- Fovissste reached the record number of 100,000 loans granted, for a total amount of 47 billion pesos financed.
-- Sociedad Hipotecaria Federal increased its credit balance 60 billion pesos, a 42% annual growth rate.
-- Infonavit formalized 447,000 loans with an investment of 98 billion pesos.
To strengthen the financial soundness of the housing sector, new products have been designed by SHF and new regulations and legislation are being drafted.
Recent measures include:
-- To attract investment to housing construction by private funds and banks, SHF is releasing three new products that provide funding and risk sharing capacity to investors in these markets.
-- Regulation for niche banks is already in place.
The regulation of securitizations has been strengthened:
-- Skin in the game: issuers are required to hold bonds that bear first losses
-- Increased information relevant to investors
-- Changes in process
-- Unregulated sofomes (non banking financial intermediaries) that raise money in the market will be regulated
-- Covered bonds will be introduced, which will provide investors with an investment alternative
Construction and housing are expected to recover their growth trend in 2010, driven by the following elements:
-- A stronger demand for housing based on higher levels of employment and income.
-- As financial markets return to normal conditions, the banking sector will increase its credit to its traditional sectors: consumption, housing and construction.
-- A 10% increase in housing finance from public sector entities.
-- 16% additional resources for CONAVI subsidies.
-- The public policy to support the creation of large, urban housing developments (DUIS).
Contact:
Enrique Escamilla
Tel: (55) 9138 9991 Ext.67025
Email: [email protected]
SOURCE Comision Nacional de Vivienda
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