"Almost Free Money" To Poor To Buy a House, President Arias Announces
In a strategic alliance with the government, the Banco de Costa Rica (BCR) will make available a ¢5 billion colones (us$9.8 million dollars) line of credit to poor Costa Ricans to purchase or construct a house.

The bank is supplying the financing while the Banco Hipotecario de la Vivienda (Bahnvi) will be deciding on who gets the loans.

The announcement was made at Casa Presidencial by president Óscar Arias Sánchez; the Ministro de Vivienda y Lucha contra la Pobreza (minister of housing and battling poverty), Fernando Zumbado; the president of the Banco de Costa Rica, Víctor Emilio Herrera; the manager of the BCR, Carlos Fernández, and the general manager of Banhvi, Ennio Rodríguez.

The program is expected to to benefit some 1.000 families who earn less than ¢231.000 colones (us$451) per month who will qualify for a loan from ¢500.000 to ¢6 million colones. The maximum value of the property to be qualified cannot exceed ¢8 million colones.

Those qualified by Banhvi will be able to obtain a 15 year loan at a fixed interest rate of 8.64% if they are receive their salaries paid directly to the BCR bank or 10.27% if that is not the case.

Government employees and many private sector employees get paid by direct deposit to their bank account. Government employees must have an account at the state banks, the Banco de Costa Rica or Banco Nacional.

The announcement explained several conditions that must be met. The borrower must be a salaried employee with at least one year on a permanent basis and working for the same company, the total combined family income cannot exceed the ¢231.000 colones and not own property. An additional condition is that the house to be purchased or built must not exceed ¢8 million colones in value and must be used to form the family home. Those who are single cannot obtain the loan.

Other conditions attached to the favourable loan is that the borrower must be Costa Rican or in the case of a foreigner, must be legal in the country and have an existing account with a public utility service, like water, light or telephone.

President Arias added that, like 20 years ago when he was president, his concern now is to help out the poor, especially those living in slums. The president said that soon his government will unveil a tax on luxury homes which will be used to help out those who are living in sub-human conditions.

Arias added that the plan of his administration is to lower the current poverty rate of 21% or some 1 million Costa Ricans.

The president was pleased with the decision by the Banco de Costa Rica and added that this is an opportunity for those families who don't have a house, now can by way of this special credit because it is "almost free money".