SANTO DOMINGO - Eliseo Cristopher, president of the Dominican Confederation of Small and Medium-Sized Construction Companies (COPYMECON), expressed his concern yesterday about the consequences that the current conflict between the United States and Iran could have on the construction sector , which, in his opinion, could trigger a rise in the costs of construction materials and threaten the stability of that sector in the country.
The businessman recalled that during previous conflicts, such as the war between Russia and Ukraine and the COVID-19 pandemic, there was an increase in the prices of steel, construction materials and international transport, directly affecting the execution of local works.
“In those crises we saw paralysis in several sectors. This situation with Iran and other tensions in the world bring us great levels of concern once again,” he said.
Cristopher also emphasized that these conflicts have led to increases in the transportation costs of goods from countries that supply materials to the Dominican Republic. “We are experiencing an increase. This is a major concern, and based on our experience, we believe there will be a significant impact on the cost of materials, transportation, and other costs in the Dominican Republic,” he noted.
Given this situation, Cristopher called on the government to pay special attention to micro, small, and medium-sized enterprises (MSMEs) in the sector, as they are the most vulnerable to international crises. “When large companies face difficulties, MSMEs tend to go bankrupt. That's why we ask that they be given priority and real support,” he concluded.
Legal fit
Last week, the Central Bank's Monetary Board authorized the release of RD$81 billion from the legal reserve requirement, intended to boost productive sectors such as construction, manufacturing, agro-industry, exports and MSMEs, with a maximum rate of 9% and terms of up to two years.
COPYMECON described this provision as a “timely financial respite” for the sector's micro, small, and medium-sized enterprises (MSMEs), which face an accumulated drop of -2.3% in the first four months of 2025, according to the Monthly Indicator of Economic Activity (IMAE).
“This measure represents a lifeline for hundreds of small and medium-sized construction companies that need affordable credit to stay active,” Cristopher noted.
The organization also proposed a series of guidelines to ensure the real impact of this measure: efficient channeling of credit to construction micro, small, and medium-sized enterprises (MSMEs) through banks, monitoring systems to measure disbursements, project execution and employment generated, technical training to improve credit proposals and ensure solvency, and dissemination of results through success stories that foster confidence in the sector.
