Re:Happy 400th birthday to the world's oldest bond
by jandrese on Monday December 23, 2024 @03:10PM
(#42497226)
Debtors see hyperinflation in neighboring countries and start getting nervous.
Re:Happy 400th birthday to the world's oldest bond
by tvaughan on Wednesday December 25, 2024 @06:33AM
(#42508292)
Rents are in UF. I’ve never seen a mortgage in UF. Some savings accounts also pay “interest” in UF.
Re:Happy 400th birthday to the world's oldest bond
by nico on Wednesday December 25, 2024 @03:56PM
(#42511105)
> I’ve never seen a mortgage in UF
??
On this recent Reddit post in /r/Chile someone asks “does anyone know if there is a bank which offers mortgages in pesos instead of UF?”
The answers all pretty much say they don’t even exist, or if the poster finds one to please let them know
https://www.reddit.com/r/chile/comments/1ep21lq/hipotecario_...
It looks like Chileans have never seen a mortgage _not_ in UF
Re:Happy 400th birthday to the world's oldest bond
by tvaughan on Wednesday December 25, 2024 @06:33PM
(#42511968)
Can’t tell what exactly they think is in UF. Perhaps you mean the principle is in UF? That’s pretty meaningless though. The actual loan amount is converted to pesos when it’s finalized (the process can take months), and the APR is just some percentage of that.
Source: Live in Chile, have mortgage in Chile in pesos.
Only if the debt is not pegged to inflation
In Chile at least, you can get a loan in “UF”, which is an inflation-adjusted equivalent of the underlying currency. The value of UF changes with inflation (almost always going up). So the loan will just keep getting more expensive
Most mortgages there are in UF