The Association of Multiple Banks from the Dominican Republic (ABA) estimated that of the relocation of 21,424.4 million of pesos of legal reservearranged by the Monetary Board, for the financing of the construction sector and acquisition of low-cost housing, 18,394.8 million of pesos corresponds to the multiple banks.
In a press release, the entity explained that of the total allocated to banking 14,715.8 million of pesos (equivalent to 80%) will be oriented to the home acquisition and the 3,679 million (20%) to financing of construction sector. “Of the resources released for such purposes, a total of 18,394.8 million pesos corresponds to multiple banks,” he said.
The union explained that the disposition of the central bank does not contradict its objective of counteracting inflation and is “a opportune measure of great economic and social impact, given the great benefits it represents for thousands of Dominican families who could materialize their dreams of having their own decent roof.”
The ABA valued the measure as positive, which will contribute to the acquisition fixed rate for the first five years of new financing for low-cost housing, at an interest rate not greater than 9% annual.
He recalled that, according to the Law for the Development of the Mortgage Market and the Trustor the Dominican Republic, the value indexed to the date of these properties is up to 4.5 million pesos, as highlighted yesterday by the monetary entity.
Subsidies will further decrease rates
The union stated that families could benefit from a even lower interest rate with the subsidies contemplated in the government program called “Happy Home”, whose facilities were recently improved by the Presidency of the Republic, to allow access to the financing contributing as initial between 2 % and the 5 % of the value of the property.
The ABA pointed out that the relocation of these resources boost the construction sectorwhose growth was around 0.6% in the period January-November 2022 and, in turn, will have a positive impact on other sectors that offer services to this productive branch.
He cited that said liquidity facilities they generate a multiplier effect, which translates into greater economic growth and employment opportunities. In addition, it generates an impact in terms of financial inclusion, given that among the potential beneficiaries there are segments of the population that are not banked.
He maintained that the positive effects This measure will directly contribute to improving the quality of life of thousands of Dominicans, which constitutes one of the fundamental pillars to promote an increasingly developed, inclusive and secure society.
