SANTO DOMINGO- The Central Bank of the Dominican Republic (BCRD) reported yesterday, Tuesday, that as of April 28, 2023, financial intermediation entities have granted 1,034 loans for the acquisition and construction of low-cost housing, for a total value of RD$3,735.6 million.
These resources have been placed as part of the program to release legal reserve requirements for financing low-cost housing, approved by the Monetary Board (JM) in January 2023 for an amount of RD$21,424.4 million, which began on February 1 of this year.
In a statement, the Central Bank of the Dominican Republic (BCRD) states that of the total resources disbursed, RD$2,480.4 million have been allocated to the acquisition of low-cost housing, benefiting 1,014 families, for an average disbursed value of RD$2.4 million per home, at an interest rate of up to 9% per year for a term of no more than five years.
"This enables more flexible financial conditions for access to decent housing for the least favored population sectors, traditionally excluded from the financial system," the document from the organization explains.
Source: Central Bank of the Dominican Republic.
The statement adds that 20 loans have been granted for the construction of low-cost housing, financing 19 construction firms for an amount of RD$1,255.2 million, at an interest rate of up to 9% per year for a term of no more than two years.
The Central Bank specifies that the loans will contribute to the construction of approximately 10,000 low-cost housing units, with the completion of more than 2,000 units estimated for 2023, which would boost economic activity and housing construction as one of the sectors with the greatest multiplier effect on economic growth.
Source: Central Bank of the Dominican Republic.
He explains that of the amount of resources disbursed, amounting to RD$3,735.6 million, a total of RD$2,325.2 million has been placed by multiple banks, RD$1,403.5 million by savings and loan associations, and the remaining RD$6.8 million by savings and credit banks.
"It is important to remember 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 Central Bank statement says.
