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February 10, 2023
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Fovissste debtors may stop paying in UMA and do it in pesos

Fovissste debtors may stop paying in UMA and do it in pesos

Nestor Jimenez and Alonso Urrutia

Newspaper La Jornada
Friday February 10, 2023, p. 8

The Housing Fund of the Institute for Security and Social Services of State Workers (Fovissste) plans to open the option for beneficiaries to contract credits in pesos and no longer in units of measurement and updating (UMA), the executive spokesperson reported yesterday, Cesar Buenrostro Moreno.

The agency worked on the necessary legal changes during the last seven months, the official said yesterday morning.

Once the measure is approved, Fovissste will absorb 11.5 percent of the increase that the UMA had in 2023 to, instead of 7.82, remain at 6.92 percent.

He announced that in this transition the agency will allocate 4 billion pesos, credits of more than 30 years old will be liquidated and there will be a total restructuring to credits impaired by economic crisesto which a discount of up to 34 percent of the outstanding balance could be applied.

The general director of the Institute of the National Housing Fund for Workers (Infonavit), Carlos Martínez, reported that the Abandoned Housing Recovery Plan has included 24,400 houses or apartments.

It has involved canceling portfolio auctions and mass lawsuits, which were processes that did not allow the borrower to have a restructuring to maintain their assetsthe official added.

He reported that the institute detected auctions to third parties made in the past six-year period of up to 20,000 houses, which caused losses to Infonavit for 260 million pesos.

Román Meyer, head of the Ministry of Agrarian, Territorial and Urban Development, explained that between 2018 and 2020 the number of homes with some lag fell from 9.5 to 8.5 million, especially due to lack of services or some need for improvement. The reduction broke a 20-year trend. At the same time, he pointed out that despite the fact that the areas of greatest need are the south and southeast of the country, in previous governments, subsidies and support for the northern states were prioritized, which is why in the current administration resources are focused on the regions of greatest need.

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