NewsWhore
02-05-2009, 02:30 PM
In separate announcements, both Banco Popular and the Popular Savings and Loan Association (APAP) say they have decided to reduce interest rates on new loans, bringing the total to five banks taking the same decision over the last few days.
In its press release, the BPD said that personal loans would go down from 36% to 32%, loans for small and medium businesses from 27% to 24% and vehicle loans from 25% to 23%.
According to Diario Libre, the mortgage interest rate will go down from 24% to 22%. They say that for current loans the decreases would go into effect as the terms are renewed.
Meanwhile, the Popular S&L Association announced reductions from 23% to 20% on new mortgage loans; loans with mortgage guarantees will go down from 26% to 20%, and personal loans will go from 34% to 28%.
Through their press release the S&L reports that it will continue offering home mortgage loans at 18% for homes costing less than RD$3 million.
At the same time, they said that they would evaluate the relation of due dates on all loans and deposits to adjust the interest rate margins as the market permits more reductions in the passive rate in the system.
Both APAP and Banco Popular said that the measure was taken in accordance with the monetary authorities' policy.
The Central Bank was the first to reduce interest rates as part of a policy that sought to make the economy more flexible. Later on, Scotiabank, Banco Leon, the BHD and the Banco de Reservas followed suit.
Of the largest banking institutions, only the Banco del Progreso has not yet said if they have taken a similar decision. Yesterday, Diario Libre contacted the bank's Public Relations department, but the manager said that he still didn't have that information.
Yesterday, Central Bank governor Hector Valdez Albizu welcomed the banks' decision in the wake of the Monetary Board's measure.
More... (http://www.dr1.com/index.html#10)
In its press release, the BPD said that personal loans would go down from 36% to 32%, loans for small and medium businesses from 27% to 24% and vehicle loans from 25% to 23%.
According to Diario Libre, the mortgage interest rate will go down from 24% to 22%. They say that for current loans the decreases would go into effect as the terms are renewed.
Meanwhile, the Popular S&L Association announced reductions from 23% to 20% on new mortgage loans; loans with mortgage guarantees will go down from 26% to 20%, and personal loans will go from 34% to 28%.
Through their press release the S&L reports that it will continue offering home mortgage loans at 18% for homes costing less than RD$3 million.
At the same time, they said that they would evaluate the relation of due dates on all loans and deposits to adjust the interest rate margins as the market permits more reductions in the passive rate in the system.
Both APAP and Banco Popular said that the measure was taken in accordance with the monetary authorities' policy.
The Central Bank was the first to reduce interest rates as part of a policy that sought to make the economy more flexible. Later on, Scotiabank, Banco Leon, the BHD and the Banco de Reservas followed suit.
Of the largest banking institutions, only the Banco del Progreso has not yet said if they have taken a similar decision. Yesterday, Diario Libre contacted the bank's Public Relations department, but the manager said that he still didn't have that information.
Yesterday, Central Bank governor Hector Valdez Albizu welcomed the banks' decision in the wake of the Monetary Board's measure.
More... (http://www.dr1.com/index.html#10)