Tamara Paseyro: Dialogue among all stakeholders essential for development of housing sector

Participation of all stakeholders must be ensured in the housing sector, Tamara Paseyro, Minister of Housing and Territorial Planning of Uruguay, said during an event held within the framework of World Urban Forum 13 in Baku.

Report quotes her as saying that in order to build a full-fledged ecosystem of housing finance, someone must take responsibility for facilitating dialogue among all participants in the process.

"To attract banks into this sector, the right incentives and a quality product are needed. Banks must also be confident in the timely repayment of obligations by beneficiaries. We were unable to achieve results until we brought all stakeholders to the same table and established a reasonable subsidy system," she said.

The minister also emphasized that subsidies should not be distributed equally among all recipients.

"For example, a debt-to-income ratio may be set at 40%, while the remaining portion is covered by a subsidy. This means that subsidies should not be provided equally to everyone. The goal is to maximize the multiplier effect rather than waste subsidies. It is the responsibility of national governments to create a strategy in which every subsidy works effectively," she emphasized.