PDVSA received credit fund that finances housing works

Petroleos de Venezuela has expanded its network of financing in the public sector, not just the National Treasury and the public banks will channel resources, also receives funding from the Simon Bolivar Reconstruction Fund, which is the mechanism that manages money for works Housing Mission.

The financial statements for 2013 show that during the year obtained a loan PDVSA Simon Bolivar Fund by 2.8 billion dollars.

That debt, says the state, was settled late last year, because it paid $ 1.1 billion and the remaining obligations offset by accounts receivable that had the fund.

The requirements that the industry has had its core projects as assigned central government have led to expand their activities and funding sources, therefore, in this structure include the Simón Bolívar Reconstruction Fund.

operations

This special fund was established in 2011 when the Great Housing Mission Venezuela was launched. At the start of the housing plan was responsible for administering the funds transferred by the oil and government entities in the area of ​​housing. Subsequently, it has been used to cast parts.

In fact, this mechanism is responsible for placing titles on the bench in exchange for a portion of the mandatory mortgage portfolio and projects serving these resources.

These instruments offered by the Fund and are reflected in the behavior of indirect central government debt, which at the end of the first quarter of this year reached 16 billion dollars, according to figures from the finance office.

Also notes the Fund has delivered to the Central Bank, which the central bank has funneled money to the housing plans.

In the financial statements, the State indicated that in the year 2012 came to settle in the Central Bank papers in the order of $ 4 billion.

Renting an apartment in Miami represents 50% of an average household income

As Secretary of Housing and Urban Development United States, Shaun Donovan says “is the worst crisis ever in the rental market.” From January to March, the payment of rent went assume 23% to 47% of revenue, a study center analysis ‘Zillow’, specializing in real estate. The national average is 30%.

This is particularly worrying for new immigrants or employees of companies that have been installed in South Florida, particularly those whose companies do not subsidize them accommodation.

The worst is that there is no solution in sight and the margin will continue to rise, experts agree, because the increase in rents is due to stagnation of property values. Spaces are bought as an investment and its owners, also arms with the crisis, want to recover the money invested and that affects the tenant.

There is another factor to be a critical stage in south Florida. The number of houses and apartments for rent has decreased dramatically, the construction industry is almost paralyzed and with each passing day there are fewer places to live in rented Miami, a metropolitan area that admitted an average of 300 families per week, trying installed in a state where, despite everything, the cost of living is one of the cheapest in the country.

An alternative, though precarious, is installed outside of Miami, even in an adjacent county, but even in these cases is not cheap but will save on a holiday since commuting costs soar because Florida has no transport infrastructure developed public and the private car is the common way to go to work, resulting in fuel and maintenance costs.

“The rent increase was much that I had no choice but to go live with a friend.’ve Been living only rented for 11 years, and I can no more,” he told the newspaper The Miami Herald, Arthur Breton, manager a department store.

According to official data, most of the apartments for rent that have flooded the market in the last year belong to foreigners who have purchased as an investment property, own not even live in the U.S. and deliver the property management to a specialized company.

On the other hand, buying a property to live in it does not seem to be a viable alternative for many. If a decade ago banks were generous in lending and fixed monthly benefit at acceptable levels, since the real estate bubble burst, financial institutions are forcing customers to pay tickets 20% or 30% of the value of property. And no matter what your business can fit into potential incentives to support the purchase of homes approved by the administration of Barack Obama.

“It’s a tough situation. Let’s see how the next two to three years for young people will be very difficult to achieve independence from parents and retirees will start having to leave their homes or apartments because pensions are not enough” WORLD anticipates, real estate analyst, Samuel McCaine.

Construction spending rises in US

Construction spending in the U.S. rose very slightly in May because the outlay for private residential construction projects I recorded its biggest decline in seven months, a sign that the severe weather continues to affect the economy.

Construction spending rose 0.1% to an annual rate of 945.700 billion, said Tuesday the Commerce Department.

The construction spending data for January was revised to show a decline of 0.2% instead of the previously reported increase of 0.1%.

Economists polled by Reuters had forecast that expenditure on construction remain flat in May.

Prices recorded sharp jump in U.S. real estate and stabilizes

The U.S. inflation accelerated to the fastest pace since early 2013 and the housing market is stabilizing, reflecting the recovery in the country is saying after weak start to the year.

The Labor Department reported that consumer prices rose 0.4% in May, the biggest gain since February last year. The figure was above expectations of 0.2%.

The rise was driven by food prices, which rose 0.5%, the biggest increase since August 2011 and the fifth consecutive monthly rise.

In annual terms, the CPI 2.1%, increased the biggest jump since October 2012, after having climbed 2% of the previous month. This was the first consecutive advance 2% since early 2012.

The so-called core CPI, which does not consider the prices of food and energy, grew 0.3%, the highest variation in nearly three years. In the twelve months to May this index increased 2%, the biggest gain in fifteen months.

The rise in inflationary pressures should ease the members of the Federal Reserve who had expressed concern that the rate was well below the target of 2%.

“Inflation in the U.S. is in a nice place, not too hot and not too cold,” he told Bloomberg Mulraine Millan, deputy head of research and strategy at TD Securities USA. “The disinflationary stress we’ve had in the last two or three years is over.”

In any case, the price index of personal consumption expenditures-the measurement of inflation preferred by the issuing entity-is still below target.

back to normal

Yesterday housing data, which showed a stabilization after cooling in boreal winter is also met.

The Commerce Department reported that initial construction totaled 1 million units last month, in line with analyst estimates. Thus, for the second consecutive month this measurement exceeded 1 million barrier after the rate of 1.07 million in April.

Construction of single-family homes fell 5.9% from 664,000 to 625,000 units, while multifamily properties work as condominiums and apartments, fell 7.6% to 376 thousand.

Three of the four regions of the nation experienced a fall in this category, led by a contraction of 25.2% in the Northeast. The exception was the South, which posted a 7.3% increase in the initial construction.

Meanwhile, building permits, which serve as a barometer for future construction, fell 6.4% to an annualized pace of 991,000. Experts cast down from 1059000-1050000.

The decline was due to the collapse of 19.5% to 372,000 units in multifamily applications. Single-family projects, which represent the majority of the market, expanded 3.7% to 619,000, its highest level since November. “The real estate industry is well,” he told Bloomberg Brian Jones, senior U.S. economist at Societe Generale. “Demand is improving,” he said.

Fed would raise rates sooner than the market believes

The Fed will probably begin to raise interest rates before they consider investors, according to a Bloomberg survey.

55% of experts believe that Eurodollar futures, the contract interest rate in the short term more actively traded in the world, are underestimating the pace of monetary tightening.

Conrad DeQuadros, senior economist at RDQ Economics, said that investors in these contracts are assuming slower than the Fed hikes rates speed.

The options on these contracts show a 47% probability that the benchmark rate, currently between zero and 0.25% is 0.75% or less by the end of 2015. The end of 2016, the probability of it being 2% or lower is 54%.
Three months ago, members of the central bank predicted that rates would rise to 1% by the end of next year and 2.25% in two and half years.

The Federal Open Market Committee today published an update of its economic projections after its monetary policy meeting.

Meanwhile, 54% of respondents said that political analysts or most important communication Fed action this year will brighten your exit strategy. Strategy that allows the bank balance is reduced as assets mature was adopted in 2011. Then the Fed would raise rates then gradually sell assets, focusing on mortgage-backed securities.

But a year ago the strategy began to change when former central banker Ben Bernanke said that the majority of staff supported not sell the real estate debt portfolio. Instead, assets gradually decline as the bonds mature.

Sales of existing homes in April to rebound in the American Union: NAR

Sales of existing homes rose in April in the U.S. and the supply of properties on the market also increased, suggesting that the housing sector is recovering strength.

The National Association of Realtors (NAR, for its acronym in English) reported that home sales rose 1.3 percent to an annual rate of 4.65 million units, the second increase in sales in nine months.

Economists had expected a figure at 4.68 million units.