Identifier
Created
Classification
Origin
07LAPAZ1009
2007-04-12 12:03:00
UNCLASSIFIED
Embassy La Paz
Cable title:
NATIONAL HOUSING PLAN TO SHELTER 14,000 FAMILIES
VZCZCXRO2731 PP RUEHLMC DE RUEHLP #1009 1021203 ZNR UUUUU ZZH P 121203Z APR 07 FM AMEMBASSY LA PAZ TO RUEHC/SECSTATE WASHDC PRIORITY 3147 INFO RUEHAC/AMEMBASSY ASUNCION 6692 RUEHBO/AMEMBASSY BOGOTA 4017 RUEHBR/AMEMBASSY BRASILIA 7906 RUEHBU/AMEMBASSY BUENOS AIRES 5156 RUEHCV/AMEMBASSY CARACAS 2386 RUEHPE/AMEMBASSY LIMA 2508 RUEHMD/AMEMBASSY MADRID 3411 RUEHMN/AMEMBASSY MONTEVIDEO 4534 RUEHQT/AMEMBASSY QUITO 5025 RUEHSG/AMEMBASSY SANTIAGO 9612 RUEHLMC/MILLENNIUM CHALLENGE CORP RHMFIUU/HQ USSOUTHCOM MIAMI FL RUMIAAA/USCINCSO MIAMI FL RUEHUB/USINT HAVANA 0254 RHEHNSC/NSC WASHINGTON DC RUCPDOC/DEPT OF COMMERCE WASHINGTON DC RUEATRS/DEPT OF TREASURY WASHINGTON DC
UNCLAS LA PAZ 001009
SIPDIS
SIPDIS
STATE FOR WHA/AND
TREASURY FOR SGOOCH
MCC FOR AKIRSCHENBAUM
E.O. 12958: N/A
TAGS: ECON PGOV BL
SUBJECT: NATIONAL HOUSING PLAN TO SHELTER 14,000 FAMILIES
UNCLAS LA PAZ 001009
SIPDIS
SIPDIS
STATE FOR WHA/AND
TREASURY FOR SGOOCH
MCC FOR AKIRSCHENBAUM
E.O. 12958: N/A
TAGS: ECON PGOV BL
SUBJECT: NATIONAL HOUSING PLAN TO SHELTER 14,000 FAMILIES
1. The GOB announced its national housing plan on April 3,
designed to decrease the current Bolivian deficit of around
300,000 homes. The plan seeks to provide housing to 14,000
families by providing subsidies of up to USD 1,400 to poor
families in rural areas and loans ranging from USD 2,500 to
USD 15,000 to poor and middle class families in urban areas.
The loans will have twenty-year terms with zero to three
percent interest rates, compared with seven to ten percent
commercial mortgage rates. The loans will be channeled
through 13 financial cooperatives and NGOs, including Habitat
for Humanity, but will be approved by the vice ministry of
housing. The program also will provide subsidies of up to
USD 500 for home improvements designed to eliminate
disease-carrying pests and loans of up to USD 1,500 for
creating productive spaces or home expansion. The government
estimates that the housing program will generate 70,000 jobs
in the construction sector during the coming year.
2. Comment: The program will hopefully reach some of the
poorest Bolivians and will likely boost the GOB's popularity,
but unfortunately is also likely to be subject to abuse and
corruption, difficult to implement, and probably will not
confer legal titles upon program participants, if prior GOB
housing programs serve as any indication. Most importantly
for the GOB, the plan promises to be an important source of
patronage in the run-up to elections expected to be held in
2008. End comment.
GOLDBERG
SIPDIS
SIPDIS
STATE FOR WHA/AND
TREASURY FOR SGOOCH
MCC FOR AKIRSCHENBAUM
E.O. 12958: N/A
TAGS: ECON PGOV BL
SUBJECT: NATIONAL HOUSING PLAN TO SHELTER 14,000 FAMILIES
1. The GOB announced its national housing plan on April 3,
designed to decrease the current Bolivian deficit of around
300,000 homes. The plan seeks to provide housing to 14,000
families by providing subsidies of up to USD 1,400 to poor
families in rural areas and loans ranging from USD 2,500 to
USD 15,000 to poor and middle class families in urban areas.
The loans will have twenty-year terms with zero to three
percent interest rates, compared with seven to ten percent
commercial mortgage rates. The loans will be channeled
through 13 financial cooperatives and NGOs, including Habitat
for Humanity, but will be approved by the vice ministry of
housing. The program also will provide subsidies of up to
USD 500 for home improvements designed to eliminate
disease-carrying pests and loans of up to USD 1,500 for
creating productive spaces or home expansion. The government
estimates that the housing program will generate 70,000 jobs
in the construction sector during the coming year.
2. Comment: The program will hopefully reach some of the
poorest Bolivians and will likely boost the GOB's popularity,
but unfortunately is also likely to be subject to abuse and
corruption, difficult to implement, and probably will not
confer legal titles upon program participants, if prior GOB
housing programs serve as any indication. Most importantly
for the GOB, the plan promises to be an important source of
patronage in the run-up to elections expected to be held in
2008. End comment.
GOLDBERG