Argentina is managing to escape the worse of the global credit crunch and has opportunities in the resdiential sector
How badly have its construction markets been affected by the credit crunch?Not much. Argentina’s banking system is not really internationalised due to the fallout from a previous banking crisis in the country in 2001, which dramatically shrank the system, so ironically the region has been protected from the knock on effects of the bank collapses in the US and Europe. Furthermore, as a result of the same crisis there is a trend for individuals and developers to finance most projects through cash, eliminating the reliance on third party funders.
The country’s residential market has been further protected by the absence of a second home market - a market particularly badly affected elsewhere - and a rule that banks will only fund up to 60% of any mortgages that they do lend on, usually to first time buyers, therefore reducing the risk associated with this group.