The ABA stated that as of May 2023, a total of 1,258 trust contracts have been registered in the Dominican Republic, which has implied an accumulated growth of 1,298% in relation to records from December 2014.
SANTO DOMINGO. – The ABA, the Association of Multiple Banks of the Dominican Republic, highlighted yesterday the relevance that the trust has represented in recent years, especially in the real estate development segment where 79% of that financial instrument in the country is concentrated.
“As the figures show, trusts are an increasingly important tool for the Dominican financial system,” the ABA said in a press release.
The entity stated that Administration trusts comprise 8%, Guarantee trusts 6%, Source of Payment trusts 3%, Public Administration trusts 2%, Philanthropic trusts 1%, and Succession Planning trusts 1%.
The ABA stated that as of May 2023, a total of 1,258 trust contracts have been registered in the Dominican Republic, which has implied an accumulated growth of 1,298% in relation to records from December 2014.
On average, around 130 new trusts were created per year for the aforementioned period, according to an analysis by the ABA's Directorate of Economic Studies, which uses data from the Superintendency of Banks and national and international organizations as its source.
In the press document, the ABA specified that there are 24 entities authorized to carry out trusts in the Dominican Republic, protected by Law No. 189-11 for the Development of the Mortgage Market and Trusts, which was enacted in 2011.
The banking sector emphasized that trusts are a tool for the country's economic development, as they have the potential to facilitate the channeling of resources towards specific projects.
He added that the financial sector, in particular, benefits from trusts through their use for financial intermediation and/or risk management. Thus, trusts can be used to finance all types of projects: infrastructure, housing, education, health, among others, he pointed out.
In this regard, he guaranteed that the multiple banking sector, along with other entities in the financial system and the respective authorities, “will continue working to promote actions that contribute to unleashing the full potential of this instrument to generate employment and wealth in the Dominican Republic.”.
“It is because of the importance of this issue that in November of this year our country will host the XXXII Latin American Congress of Trusts (COLAFI), an annual event organized by the Latin American Federation of Banks (FELABAN) together with this association,” the ABA announced.
He explained that the aforementioned event, whose specifications are on the website www.colafird.com, traditionally brings together leaders, experts and professionals from the trust and wealth management industry in the region and around the world.
