They request BCRD apply other monetary flexibility measures, such as releasing resources from the legal reserve
So far the impact of the reduction in monetary policy on bank interest rates has been minimal, which is why housing builders and developers expect a greater decrease before the end of the year so that they can get rid of a high stock of unsold homes. .
By participating as guests in the Economic Meeting of TODAY, the directors of the Dominican Association of Builders and Housing Developers (Acoprovi), Annerys Melendezpresident; Guido Rosariofirst vice president, and Santiago Colomé, third vice president, regretted that the last two reductions in the monetary policy rate carried out by the Central Bank (BCRD) have been reflected “insignificantly” in the decrease in mortgage interest rates.
They maintained that the construction sector has been greatly impacted during the last year by inflation and the cost of mortgage loans that range from 14% to 16%, which is why the escalation towards increases in interest rates that has occurred registered since 2023 has caused a reduction in sales of housing units between 35% and 40%, especially in low-cost housing (RD$ cap 5,025,380.75)
They maintained that they are aware that the Dominican monetary authorities have had good management and that the measures taken in the country are influenced by the decisions of the United States Federal Reserve (Fed).
They appreciated that the country is making the corresponding adjustments to external behavior, which is why they expressed confidence that before the end of this year, interest rates in the local market will drop by at least two or three percentage points.
They urged the BCRD to focus on other monetary flexibility measures, including the release of resources from the legal reserve that implies allocating resources to the construction sector and low interest rates.
They pointed out that they have the experience of many clients who at the time of doing the business qualified to be able to take out a loan, but when the date arrives to deliver the homes, the banks deny them financing due to the increase in installments due to the increases in prices. interest rates in the last year.
They said that this situation has caused a reduction in home sales, confirmed by construction companies, promoters and financial entities, according to an internal survey by Acoprovi.
