Mortages Bill Was Approved by the Ecuadorian Assembly

Financial entities in Ecuador will have a new regulation, after the plenary session of the Assembly approved the Bill regulation for housing or vehicle loans.

With 68 affirmative, one negative, one white vote, and 21 abstentions, the Assembly yesterday approved the project on an emergency economic submitted by the Executive on 9 April.

The bill passed by the National Assembly will be passed to the President of Ecuador, Rafael Correa, who in 10 days must approve or veto it.

The provisions of this Act shall apply from the date of its publication in the Official Gazette (With not retroactive effect).

Remarkable points of the bill:

-The approved text states that in the event that a person cannot afford a loan for buying a first home or vehicle, such properties will be the only guarantee to extinguish the debt.

-The bill limits remained in the cost of housing and truck to extinguish debt, $ 146,000 (500 basic salary) and $ 29,200 (100 basic salary), in that order.

-The mortgage and vehicles may neither be warrant with bonds, shared guarantees nor with other security interests in property other than that of funding.

– Credits will cease to accrue the respective interests once the seizure of any property covered by this Act regulation. (FL)