Efforts are being made to enable citizens abroad to acquire real estate and support their parents, children, and other relatives in achieving homeownership, considering housing as one of the most impactful social issues
SANTO DOMINGO – Buying a home in their country is a dream for every Dominican living abroad. Their contribution to the national economy represents one of the main sources of remittances to the Dominican Republic, which totaled US$1,057.1 million in September, according to the Central Bank of the Dominican Republic (BCRD). The United States, where the majority of Dominicans living abroad reside, contributed 80.9% of these remittances during the month, amounting to US$780.1 million.
The Financial Committee of Meta RD 2036, the development platform created by Decree 337-24, reported yesterday, Monday, November 2, that it is promoting five initiatives aimed at strengthening the financial inclusion of Dominicans residing abroad, through mechanisms that facilitate their access to banking products, credit, investments, housing, and retirement savings alternatives.
The statement establishes that the strategy seeks to expand the economic participation of the diaspora in national development, promoting that their contributions are not limited to sending remittances, but also translate into investment opportunities, acquisition of assets and well-being for their families.
In this regard, the Committee highlighted that Dominicans residing abroad constitute "a pillar of foreign exchange generation, savings and investment," and therefore considers it necessary to strengthen their financial ties with the Dominican Republic.
He also explained that the aim is to enable citizens abroad to acquire real estate and support their parents, children, and other relatives in obtaining their own homes, considering housing as one of the areas with the greatest social impact.
The five initiatives to financially integrate the diaspora
To achieve these objectives, the Meta RD 2036 strategy is structured around five lines of action that seek to eliminate barriers to accessing the Dominican financial system and to leverage technological tools to facilitate operations from abroad, the Committee explained.
1. Digital financial access
First, this initiative will allow Dominicans residing outside the country to open bank accounts and access investment products in banks, stock exchanges and fund managers, without having to travel to the Dominican Republic.
To this end, the mechanism includes simplified due diligence processes, with the purpose of streamlining the incorporation of new users into the financial system.
2. Loans using alternative data
On the other hand, the second initiative consists of facilitating access to financing through a credit evaluation system that incorporates alternative information to the traditional banking history.
In this way, to determine the applicants' ability to pay, data such as telephone and service payments, home stability, and purchases made through electronic commerce would be taken into account.
This mechanism is intended to especially benefit those who lack a local credit history.
3. 100% Digital Mortgages
Third, this proposal contemplates implementing a model that allows Dominicans abroad to legally acquire, finance, and register properties and homes from their countries of residence.
The goal is for them to be able to complete the process without traveling to the Dominican Republic or resorting to in-person powers of attorney, in accordance with the applicable legal framework.
4. Financial education
In turn, the fourth line of action seeks to strengthen the financial knowledge of the diaspora so that it can make informed decisions about savings, credit, investments, insurance and financial protection.
Similarly, it includes strengthening the "Get Banked Step by Step" program, as part of efforts to expand financial literacy.
5. Supplementary pensions
Finally, the fifth initiative will facilitate digital access to savings mechanisms through Dominican pension fund administrators (AFPs).
This alternative aims to enable Dominicans residing abroad to build wealth and financially plan their retirement using instruments available in the Dominican system.
They will conduct a pilot program to buy homes from abroad
In addition to these five initiatives, the Finance Committee announced a pilot program to promote homeownership among Dominicans living abroad, using a fully digital process.
Specifically, the process will cover everything from identifying the buyer to signing the documents, paying taxes and registering the mortgage, ensuring the legal and technological security of each transaction.
To implement this proposal, the Association of Housing Builders and Promoters (Acoprovi) will participate, connecting real estate developers with local banks, which are responsible for evaluating applicants and providing financing.
Likewise, the General Directorate of Internal Taxes (DGII) will be involved in the real estate transfer processes, and the Real Estate Jurisdiction will be involved in the formalization and registration of rights and guarantees.
Mivhed will play a strategic role in access to housing
Within this strategy, the Ministry of Housing, Habitat and Buildings (Mivhed) would play a strategic role by linking social and affordable housing opportunities with financing and support from the diaspora.
In this way, the aim is to expand the possibilities for Dominicans abroad to acquire a home for their relatives in the country, while also boosting the real estate and construction sector.
They seek to convert remittances into investment and assets
In short, the Finance Committee maintained that this work agenda seeks to transform the economic effort of Dominicans abroad into opportunities for housing, savings, investment and family well-being.
Furthermore, the proposal seeks to strengthen economic ties between the diaspora and the country, boost construction activity, and contribute to the goal of doubling the size of the Dominican economy by 2036.
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