On December 26, Daniel Tillard took the command chair of the National Bank, the public entity that ranks as the largest in the financial system in the country by level of assets and volume of loans and deposits.
There, the man from Córdoba adds a new stage to a career that had him eight years in the second largest public bank in Argentina (the Province of Buenos Aires) and as many others in Bancor.
“Here I have the mandate not only to ratify that Nación is the main Argentine bank, but to reaffirm that role in a market that will become more competitive. Because a definition of the national government is that deposits stop financing the deficit and become credit for families and SMEs,” explains Tillard.
The manager highlights the “program” of mortgage loans at UVA launched by the entity as one of its main lines of work. “Not even in my most optimistic vision did I imagine that in mid-May we were going to be promoting a mortgage credit program that has not existed in Argentina in recent years,” he acknowledges.
A strong differential in the Nation’s offer is the alternative, for the debtor, of opting for a mechanism that allows protection against a possible inflationary jump. It is worth remembering that the UVA is one thousandth of the average construction cost of a square meter updated daily by CER (Reference Stabilization Coefficient), based on the consumer price index.
Tillard explains: “Although in the long term the UVA credit runs along with the salary, in the short term there may be mismatches. So, what we designed is the option that, starting 180 days after the loan is disbursed, the borrower can choose that the adjustment, instead of being by UVA or CER, be by CVS (Salary Variation Coefficient), an index that reflects the variation of the registered salary. In the long term, the family will have the quota in line with the evolution of their income. This, of course, is optional and has a value of 1.5% per year. With this, the 30-year credit for those who collect their credit at the bank goes from having a rate of 4.5% to 6%.
–Among the people who request the loan, how many request this coverage?
–More than 60% state that they are going to take the coverage.
–About what number of requests? Is there much interest?
–We have a very significant demand, which is reasonable given the power of our offer and because there has been no mortgage credit for many years. In Córdoba there was until December (from Bancor), but not in the rest of Argentina. We have about 20 thousand applications in process. At any moment the first credits will begin to be liquidated. As the months go by and we implement more technology, it will be much faster and more immediate.
–Based on the analysis of the applications, what characteristics do the plaintiffs have?
– Our offer is for the acquisition, construction or exchange of unique homes for up to 140 thousand UVA, which is equivalent to about US$ 120 thousand. And our financing is 75%, that is, about 105 thousand UVA (about US$ 85 thousand to MEP). I would say that the average is somewhat lower ($71 million as reported by the Bank), although there are many differences between the country’s urban centers, where property prices also vary greatly.
–How many loans are there for Córdoba?
–In total, we plan to carry out 40 thousand mortgages for US$ 4,000 million in four years. In Córdoba, the forecast is to give four thousand credits. That number has to do with Córdoba’s weight in the national GDP but also with other reasons. For example, Córdoba has a favorable positive treatment for mortgage loans, both the capital adjustment and interest are exempt from Gross Income. In the case of a single home there are reduced seals. That helps a lot. And also the operation of the Property Registry, which is very efficient. The same thing happens with the offices that have control of the land, usually municipal jurisdictions. All of this helps to create a supply of properties and favors the granting of credit.
–What other lines of credit are you prioritizing?
–We are greatly expanding our offer. We strongly promote export financing. Credit disbursement was 650% higher than a year ago. We also see a huge increase in demand for farm machinery equipment. We were recently in Agroactiva (Santa Fe) and we had a very high demand. Some 6,350 bank clients expressed their willingness to take out financing to purchase machinery. When these financings are completed, the amount involved will be something like US$3.4 billion.
–What does agricultural credit cost?
–For machinery, 2% in dollars. When there are agreements with manufacturers, there are financing that is 0% in dollars, this is extraordinary. And in pesos, for the purchase of machinery the rate starts at 17%. It’s an excellent offer.
