First ruling against UVA credits: a judge from Mendoza ruled in favor of a Banco Nación debtor

The Justice of Mendoza became the first to rule against the National Bank for UVA credits: decide to eliminate the Purchasing Value Unit as an update indicator mortgage loan from that bank.

The debtor owed 2,300,000 million pesos in 2017 to be paid in 30 years, but due to the updated adjustments according to inflation, the figure to date is $22,500,000, despite having paid for five years. It is worth noting that this sentence sets a precedent for all those who saw their debts increase because of the UVA.

Judge Pablo Quirós will surely make room for the lawsuit against the Bank of the Argentine Nation and resolved the reading of the contract by mutual agreement with a mortgage guarantee for the acquisition of the property.


The ruling says that “the amount of the fees to be paid by the actor will be updated, from the date of the first freezing ordered by the competent authority (August 2019), based on the evolution of the Salary Variation Coefficient (CVS) published monthly for him National Institute of Statistics and Censuses (INDEC)without this implying extending the number of installments originally planned, maintaining the agreed interest rate, with a maximum rate of 3.50% nominal per year”.

The court analyzed the case and possibly carried out accounting tests that determined that the debt grew by almost one million pesos per month, approximately. The exceptional calculation that the credit of $2,300,000 (without interest) adjusted for inflation of 40% per year (30 years) will generate a debt of $59,673,853.75 without interest in UVA, while updated interest makes up 40% inflation showed $36,793,086, which gives a total of $96,466,939. Taking into account 100% inflation, it would generate a debt of $241,167,347.

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“This ruling sets an important precedent for all those with mortgages in the country, since justice is recognizing the failure of the UVA system, considering that the over-indebtedness it generates is contrary to the constitutional right of access to single and family housing,” said attorney Mariela gonzalez to the portal mdzol.

The judge who signed the sentence, for his part, stated: “Even though these credits have been designed to operate in an inflationary economy, a considerable part of the monthly income of the debtor and the co-debtor has therefore arisen to pay it, the truth is is that the extraordinary modification caused by the macroeconomic variables seems alien, exorbiting the contractual alea to the point that it cannot be tolerated or admitted (in my opinion) that translates into the loss of the single family home due to that single circumstance”.

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Lastly, González maintained that “the Justice of Mendoza is sending a clear message to the State which accounts for the urgent need to eliminate this updating system subject to inflation and other parameters”.


It is estimated that nationally there are about 110 families that have UVA mortgage loans whose monthly payments for their homes increased by more than 100% in relation to last year, impacting the total debt that, in some cases, even tripled.

It is worth remembering that these credits were promoted by the State with the aim of solving the country’s housing deficit. However, the current situation of the debtors shows that the big beneficiaries are the banks, while thousands of Argentines are heading towards not being able to continue paying.


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