SANTO DOMINGO– Access to financing remains one of the main challenges for micro, small, and medium-sized enterprises (MSMEs) in the Dominican Republic. To address this gap, the Inter-American Development Bank (IDB) and monetary authorities are advancing a plan to expand credit to this segment through US$100 million in resources and a new guarantee fund.
According to the Central Bank of the Dominican Republic (BCRD), the issue was raised during a meeting between Governor Héctor Valdez Albizu and a technical mission from the IDB, within the framework of the FinaRD 2036 program: Accelerating Investments in the Dominican Republic.
A scheme to facilitate access to credit
According to the agency, the program will channel resources through the Development and Export Bank (BANDEX), using first and second tier financing mechanisms to support productive activities of MSMEs.
According to Diego Herrera, principal specialist in Financial Markets at the IDB, the initiative includes US$100 million earmarked to strengthen access to credit, with priority given to micro and small businesses that meet the established criteria, including businesses with export potential and companies led by women.
The goal is to expand financing options for segments that traditionally face greater difficulties in obtaining credit from the financial system.
Guarantee fund to reduce risk
As part of the program, the creation of a partial guarantee fund is also planned, which would start with a capital of US$5 million.
As Herrera explained, this instrument would issue guarantee certificates to back loans granted by financial intermediation entities to eligible projects, reducing some of the risk of the operations and facilitating the approval of loans for small businesses.
This type of mechanism is used by development banks to incentivize financing to sectors considered strategic for the economy.
Support for productive development
According to the IDB, the proposal maintains the focus on strengthening a development bank oriented towards financing productive activities, especially those linked to the export sector.
For his part, Valdez Albizu indicated that the initiative aligns with the National Financial Inclusion Strategy 2022-2030 and with the Central Bank's Institutional Strategic Plan 2026-2029, aimed at expanding access to productive financing.
He also noted that the regulatory changes necessary to implement this scheme will be evaluated by the Monetary Board.
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