The new requirements for the mortgage credits, in order to avoid non-payment, decreased the volume of approved mortgages by 15% in the private sector.
The Ecuadorian Central Bank (Spanish acronym BCE) indicated that $656,9 million of mortgage credit were approved in 2011 against 554,8 million in 2012.
According to Cesar Robalino, president of the Association of Private Banking of Ecuador (Spanish acronym ABPE), this situation is due to the new legislation which forces the credit organisms to accept real estate goods in case of non-payment.
However, the situation is different in the public sector. The volume of the mortgage credit according to the Banco del Instituto Ecuatoriano de Seguridad Social (Biess) increased by 22,1% (766,4 million of dollars in 2011 and 935,9 in 2012).
The real estate sector feels the consequences of the new legislation, both individuals and companies.. As declared by Marco Eugenio, real estate agent, “banks ask a $3.000 salary for a $118.000 house”. Before, sales were “about five or six houses a month” while now they just get the minimum quota.”
PYME managers ensure too that banks are really more careful in the examination of a profile before approving a credit.