The average monthly amount disbursed by financial intermediation entities, under this low-cost housing financing program, is RD$1.3 billion per month, with a distribution of 66% for the acquisition of these homes and 34% for their construction.
SANTO DOMINGO.- To date, financial intermediation entities still have RD$14,807 million of the legal reserve available for the acquisition and construction of low-cost housing, the Central Bank of the Dominican Republic (BCRD) reported yesterday.
Of that amount, RD$12,777 million could be channeled towards the acquisition of low-cost housing and RD$2,030 million could be granted as interim loans to the construction firms of such projects.
The Central Bank of the Dominican Republic (BCRD) said that as of July 4 of this year, financial intermediation entities have granted 1,790 loans for the acquisition and construction of low-cost housing, for a total value of RD$6,618 million.
In a press release, the entity explained that of the total resources disbursed, RD$4,362 million have been allocated to the acquisition of already built low-cost housing, benefiting the acquiring families with 1,755 loans, at an interest rate of up to 9% per year for a term of no more than 5 years.
The Central Bank of the Dominican Republic (BCRD) stated that this creates financial conditions that, together with the tax benefits of the ITBIS Bond and the Rate Bond, promote access to decent housing for lower-income population sectors, as well as their inclusion in the financial system.
He added that 35 interim loans have been placed for construction firms of low-cost housing projects for an amount of RD$2,256 million, at an interest rate of up to 9% per year for a term of no more than 2 years.
According to the press release, the resources allocated to this program for interim loans will contribute to the construction of approximately 13,000 low-cost housing units, with the completion of approximately 2,800 units estimated for 2023, thus boosting housing construction, one of the sectors with the greatest multiplier effect on domestic economic activity.
With these figures, the average monthly amount disbursed by financial intermediation entities, under this low-cost housing financing program, is RD$1.3 billion per month, with a distribution of 66% for the acquisition of these homes and 34% for their construction.
It is worth remembering that the legal reserve resources for low-cost housing loans are funds allocated to financial intermediation entities, according to the volume of liabilities subject to legal reserve requirements of each one.
These entities have the power to choose the beneficiaries of the loans they grant, according to the credit profile of each debtor, based on the conditions and formalities required by the Monetary Board and the Central Bank.
