Santo Domingo.- The Central Bank of the Dominican Republic (BCRD) informed economic agents and the general public that the decision adopted by its Open Market Committee at the monthly monetary policy meeting in November 2021, to increase its Monetary Policy Rate ( MPR) from 3.00% to 3.50%, does not apply to liquidity facilities granted by said institution for an amount of up to RD $ 215,814.3 million, 5% of GDP, for financial intermediation entities to channel loans to productive sectors, households and micro, small and medium-sized enterprises (MSMEs), in order to mitigate the adverse economic impact of the COVID-19 pandemic, thus contributing with the necessary stimulus for the maintenance of productive and consumer activities.
In this sense, the resources granted by the BCRD to financial intermediation entities through the Rapid Liquidity Facility (FLR) are maintained at an invariable interest rate until maturity of 3.0% per year, guaranteed with securities issued by the Ministry. Treasury, the Central Bank, private companies and low-risk credit portfolio. Likewise, the facilities granted through the Repo Financing Window are maintained at 3.5% per year, guaranteed with securities issued by the Ministry of Finance and by the Central Bank, which is why they must be maintained up to 8% per year, unchanged until maturity. , the rates of the loans channeled by said entities to the productive sectors; and for households and MSMEs at the competitive rates originally agreed between the entities and the debtors, according to the inherent costs of these market segments.
In the same way, the interest rates of the loans granted to the referred sectors with resources released from legal reserve must be kept fixed until their maturity. In other words, the terms and conditions of the loans channeled by financial intermediation entities cannot be modified with resources obtained in the different liquidity windows of the Central Bank.
Likewise, the aforementioned interest rates will remain unchanged for the renewals of credit lines maintained by the BCRD after the beginning of the gradual and orderly return of the liquidity granted through the different facilities, so that the productive sectors, households and MSMEs can count on with these resources at low cost, as necessary working capital to continue their productive activities normally. The Central Bank of the Dominican Republic reaffirms its commitment to macroeconomic stability and the proper functioning of the financial and payment systems, being vigilant to adopt the necessary measures for such purposes in a timely manner.
