SANTO DOMINGO – The Monetary Board (JM) authorized the Central Bank of the Dominican Republic (BCRD) to allocate RD$2 billion, out of the RD$35,355 million released at the end of last November, for micro, small and medium-sized enterprises (MSMEs), a measure that was immediately applauded by the Dominican Confederation of Micro, Small and Medium Construction Companies, Inc., (COPYMECON).
Eliseo Cristopher, president of the entity, said that the recent measures adopted by the Central Bank authorities predict a favorable climate for the construction sector for the beginning of next year.
“What has been established regarding the release of the legal reserve requirement, plus what we have as a scenario with respect to the Dominican State's housing plans and the way in which the Central Bank has managed inflation, and now the issue of MSMEs, we continue to reiterate that we are in an extraordinary moment of takeoff for the construction sector with a very favorable start in the year 2025,” the business leader expressed.
The Central Bank's statement announcing the new measure indicates that it complements and promotes the financing of low-cost housing for low-income families, whose economic activity is largely carried out in the field of micro and small businesses that will henceforth benefit from these resources.
Cristopher stated in a press release that the small construction sector is not worried about inflation, since the Central Bank has managed and contained this scourge, maintaining that, however, the high interest rate persists as an obstacle for both builders and buyers.
He understands that by lowering the interest rate through the announced measures, opportune conditions are presented for the development of the sector, which will give a significant boost to the national economy.
“We are pleased that the Monetary Board and the Central Bank have considered our requests to provide support to the sector we represent. Therefore, combining controlled inflation, low interest rates, and the government's housing plans, we are facing a highly positive scenario to make significant contributions to addressing the housing deficit and the stability of the sector, guaranteeing greater growth for the country,” said the president of Copymecon.
He added that allocating loans of up to RD$2.0 million pesos at competitive rates and for a term of up to two years, with the possibility of repurchasing the funds at the end of the loan, allowing them to benefit from favorable financial conditions for a longer period of time through the renewal of the loans, will be very beneficial for small builders.
The construction businessman stated that it is important to highlight that both the JM and the BCRD are implementing what is mandated by the National Financial Inclusion Strategy 2022-2030, which includes lines of action linked to increasing access to credit for economic sectors with fragile banking, such as micro and small businesses.
He noted that expanding the scope of this legal reserve release program facilitates the participation of financial intermediation entities with business models aligned with the MSME sector, which should translate into a comprehensive use of the resources made available.
In turn, the adoption of this measure complements and favors the financing of low-cost housing for low-income families, whose economic activity is largely carried out in the field of micro and small businesses that will henceforth benefit from these resources, he explained.
He pointed out that this provision should contribute to lowering interest rates on loans to productive sectors and households, as well as sustaining credit growth, creating favorable conditions to maintain the dynamism of consumption, investment and aggregate demand, in an environment where inflation has remained at the lower end of the target range of 4.0% to 1.0% during the current year.
The Central Bank noted in the statement that, according to the National Survey of Micro, Small and Medium Enterprises (MSMEs) conducted in 2022-2023, this sector represents 32% of the gross domestic product (GDP) and 61.6% of the employed population, citing among its most important economic problems the lack of access to credit for the acquisition of supplies, payment of debts, expansions or repairs, as well as the purchase of machinery and equipment.
