SANTIAGO.-José Luis Ventura, executive president of the Cibao Savings and Loan Association, ACAP, reported that as of the end of October 2023, the institution has registered a growth in total net assets of 12%, reaching RD$82,236 million, which represents a substantial increase since December of last year.
He said that in parallel, the net loan portfolio has experienced a growth of 9%, reaching RD$49,747 million, figures that reflect the strength and dynamism of the institution in the Dominican financial market.
Consolidating its leadership position and in line with the trust and commitment to its associates, the institution placed the sum of RD$2.5 billion in subordinated debt bonds in the Dominican stock market in October, according to a press release from the financial entity.
It explains that the financial transaction has the expert support of Parallax Valores as structuring and placement agent. The bonds have received favorable ratings of 'A (dom)' from Fitch Ratings and 'A' from Feller Rate, which underscores the reliability and stability of this issuance for investors.
"This strategic step not only strengthens Asociación Cibao's capital structure, but also testifies to its unwavering commitment to the economic growth and prosperity of the Dominican Republic," the executive stated.
Conferences
With the aim of strengthening the knowledge and skills of its members in a climate of economic growth and sustainable development, ACAP offered two conferences to its clients to guide them on the prospects and challenges facing the Dominican economy in the current context.
In the city of Santiago, economist Magín Díaz gave an analysis in his presentation "The Dominican economy post covid: current situation and macroeconomic and fiscal perspectives.".
Díaz detailed the state of Dominican fiscal and monetary policy, its effects on economic growth, and short-, medium-, and long-term projections. His analysis also covered the risks and opportunities for the construction sector and the national economy as a whole.
Regarding interest rates, he stated that if rates continue to rise in the United States, the Central Bank of the Dominican Republic will not have as much room to continue reducing them, even though inflation has decreased.
Meanwhile, in Santo Domingo, the knowledge and experience of economist Rolando Guzmán, former rector of INTEC, were reflected in the conference "The Dominican Economy 2023: Structure and Situation".
Guzmán embarked on a historical journey to highlight significant socioeconomic changes and outlined current trends, answering vital questions about growth factors and expectations in an inflationary environment.
Regarding current economic conditions, the speaker presented evidence that the country's Gross Domestic Product is largely dependent on the U.S. economic cycle and international markets for key import and export products. He stated that a recovery in global trade is expected by 2024, which he considers positive news.
Both experts agreed that a tax reform is likely next year, given that the deficit in the last two years has been higher than what was established in the original budgets and there is a need to put public debt on a downward trajectory.
