SANTO DOMINGO- The construction sector has been the fourth to receive resources disbursed by the Central Bank of the Dominican Republic (BCRD) and which are part of the liquidity measures approved by the Monetary Board for productive sectors, households and MSMEs.
The agency reported yesterday that as of July 18, 2023, the amounts disbursed reached RD$58,741 million, which have been channeled through financial intermediation entities via 6,825 loans, placing the construction sector among those that have received the most resources, with a figure of RD$5,680 million, representing 9.7% of the total.
The Central Bank of the Dominican Republic (BCRD) said that the disbursed amounts are distributed among the following sectors: commerce with RD$28,671 million (48.8%), MSMEs with RD$9,662 million (16.5%), household consumption with RD$5,976 million (10.2%), construction with RD$5,680 million (9.7%), manufacturing with RD$5,273 million (8.9%), and mortgages with RD$1,076 million (1.8%), among others.
Source: Central Bank of the Dominican Republic.
The agency noted that the funds have been granted to financial intermediation entities, guaranteed by securities issued by the Ministry of Finance and the Central Bank, and complying with the formalities required by the Monetary Board, to channel new financing to productive sectors and households, at interest rates not exceeding 9% per year, and to micro, small and medium-sized enterprises (MSMEs), at competitive rates in accordance with the costs inherent to this market segment.
"Analyzed by each liquidity measure, the funds placed through the rapid liquidity facility amount to RD$30,018 million. These are distributed as follows: RD$26,521 million (88%) for productive sectors, RD$3,041 million for MSMEs (10%) and RD$456 million (2%) for households.".
The Central Bank explained that this facility began with an amount allocated to the aforementioned sectors of RD$30 billion, which was placed in full and was subsequently expanded by the Monetary Board by RD$25 billion, to be granted as the entities exhausted the use of the resources released from the legal reserve.
"In the case of resources released through the legal reserve requirement, the amount disbursed totals RD$28,723 million out of the RD$34,000 million approved by the Monetary Board. Of this amount allocated, RD$15,522 million went to the productive sectors (54%), RD$6,622 million (23%) to MSMEs, and RD$6,579 million (23%) to households.".
The regulatory body added that of the total loans placed through these liquidity measures, 6,825 loans, 4,124 (60%) correspond to households, 1,832 to loans to MSMEs (27%) and the remaining 869 correspond to productive sectors (12.7%).
"As can be seen, the measures adopted by the Monetary Board have been aimed at boosting credit to economic sectors with a broad multiplier effect on economic activity, of which micro, small and medium-sized enterprises (MSMEs) have been the second most favored sector, with 1,832 loans and a disbursed amount of RD$9,662 million," the Central Bank stated in a press release.
