Govt. puts US$17.7mn into loan guarantee fund

Colombia's government has set up a mortgage trust fund for 50bn pesos (US$17.7mn) that will guarantee up to 70% of small home loans, local financial daily Portofolio reported. The government has identified a number of organizations that are in the position to issue home loans backed by the trust's guarantee, territorial development agency Findeter's chairman Bernardo Moreno was quoted as saying. Local savings institutions, or cajas de compensacion, have 3.5 million affiliates, of which 40% are in need of housing. However, 600,000 affiliates are not eligible to take out a loan and the trust will direct its attention to these people, Moreno was quoted as saying. Loans under this program would range from 4mn to 14mn pesos with terms of one to five years. Findeter plans to contribute 90bn pesos of its own to fund low-income housing.