The Dominican Confederation of Small and Medium Construction Companies (Copymecon) regretted that Law 189-11, which regulates the construction of affordable housing with workers' pension funds through trusts, is not being applied.
Taken from Hoy
SANTO DOMINGO - The construction sector was one of the most dynamic in 2021, with growth exceeding 20% , but this growth rate could be decimated in 2022 by the tightening of monetary policy, so it is necessary to focus resources to finance micro, small and medium construction companies.
This proposal was made by Eliseo Cristopher , president; Frank Guerrero , VP; Eduard Del Villar, Economic and Trust Advisor; and Wilson Guerrero , Communications Director of the Dominican Confederation of Small and Medium-Sized Construction Companies (Copymecon), during their participation as guests at the Meeting
Today's Economic
Copymecon executives indicated that factors such as low interest rates, the confidence generated by the Government in the productive sectors and the increase in remittances to the country were key for the construction sector to register significant growth last year.
However, they expressed that 2022 generates some uncertainty, because the Central Bank of the Dominican Republic (BCRD) began to take restrictive measures with the aim of curbing inflation.
They recalled that in 2020 the BRCD implemented a program that included the liquidity window mechanism for tourism, construction, manufacturing and exports with resources of RD$20 billion.
In that order, they raised the need for monetary authorities to maintain a focused policy, so that the construction sector can continue to maintain an important participation in the country's economic growth
In addition to creating the conditions for these resources to reach micro, small and medium-sized construction companies and not remain only in the hands of two or three large construction companies.
Financing
The president of Copymecon, Eliseo Cristopher , stated that in recent years the Central Bank has released a significant amount of resources from the legal reserve requirement, however he emphasized that micro, small and medium-sized construction companies have not had access to those funds.
Therefore, he advocated for creating mechanisms that would allow these resources to reach construction SMEs.
He acknowledged the high level of informality in the sector, which is why a comprehensive formalization plan is needed. This would allow for a greater contribution of resources to the Gross Domestic Product (GDP) , in addition to the creation of more formal jobs.
Regrets that Law 189-11 is not being applied
The Dominican Confederation of Small and Medium Construction Companies (Copymecon) regretted that Law 189-11 , which regulates the construction of affordable housing with workers' pension funds through trusts, is not being applied.
He understands that this initiative would provide an opportunity for small home builders to access pension funds through trusts, which would further develop the real estate market in the country.
He recalled that the idea was for the trust to serve as leverage to access pension funds.
He pointed out that Law 87-01, which creates the Dominican Social Security System (SDSS) , also establishes it, while Law 189-11 for the Development of the Mortgage Market and Trusts in the Dominican Republic includes it.
