SANTO DOMINGO - The Central Bank of the Dominican Republic (BCRD) reported this Tuesday that, as of yesterday, March 27, 2023, financial intermediation entities have granted financing for the acquisition and construction of low-cost housing for a value of RD$1,389.2 million.
He adds that these resources have been placed as part of the legal reserve release program approved by the Monetary Board (JM) in January of this year, for an amount of RD$21,424.0 million, which began on February 1 of this year.
In a press release, the regulatory body states that of the total resources disbursed, RD$1,149.3 million have been allocated to the acquisition of low-cost housing, benefiting 458 families, for an average disbursed value of RD$2.5 million per home.
The remaining sum, amounting to RD$240.0 million, corresponds to eight interim loans for the construction of low-cost housing, for an average value of RD$30.0 million, the Central Bank adds.
He explains that of the amount of resources disbursed, amounting to RD$1,389.2 million, a total of RD$733.2 million has been placed by multiple banks, RD$649.2 million by savings and loan associations, and the remaining RD$6.8 million by savings and credit banks.
"It is important to clarify that the legal reserve funds released for low-cost housing loans are funds owned exclusively by financial intermediation entities, based on the volume of liabilities subject to legal reserve requirements for each one. These entities have the power to choose the beneficiaries of the loans they grant, according to the credit profile of each debtor, based on the conditions required by the Monetary Board and the Central Bank," the statement notes.
It states that these conditions do not guide or determine, in any way, the flow of interim loans towards particular categories of low-cost housing construction companies, and that financial intermediation entities may grant financing to any construction companies, regardless of their size.
