The 1999 Housing Crisis in Colombia: Causes and Consequences, Apuntes de Economía

¡Descarga The 1999 Housing Crisis in Colombia: Causes and Consequences y más Apuntes en PDF de Economía solo en Docsity! Allison Rios Henao The housing crisis in 1999 At that time it was not convenient for investors to keep their money in Colombia, because at that time the country's economy was not very stable, so the Banco de la República decided to raise the interest rate to convince investors to leave their money in Colombia, raise the interest rate also causes the interest rate of credits to rise housing, causing the real estate sector to fall, because the interest was already very high, there came a time when housing was very expensive, and as it happened at the same time as the rate of unemployment, because many people could not continue paying because they did not have enough money and returned the houses in exchange, causing the builders and financial institutions to keep many real estate that nobody could pay, so they decided to lower the price, but even so nobody bought them, making the properties stay there, empty, and so many companies and entities financials went bankrupt.