NewsWhore
02-13-2009, 03:10 PM
The Central Bank's Monetary Board has announced a set of new measures aimed at freeing up credit in the market and stimulating the economy. Central Bank (CB) Governor Hector Valdez Albizu announced the relaxing of commercial bank legal reserves up to RD$10.5 billion. Of the total, RD$7.3 billion will be made available for financing industry, agriculture, construction and small and medium-sized businesses. RD$3 billion chapter would be used by banks to purchase of government-backed bonds for assistance to flood victims and to repair damage to infrastructure in affected areas.
Following suggestions from the financial institutions, the Monetary Board authorized the Superintendence of Banks to implement temporary measures to relax Evaluation of Assets (REA) banking norms in order to facilitate credit. These measures will come into effect on 16 February 2009. The overnight interest rate was cut to 6%, and Lombarda to 11.5%, announced the bank. The CB has reduced the Overnight rates by 3.5% and the Lombarda rates by 4.5% since 1 January 2009. Interest rates for preferential loans will also be reduced to 12% and 10%. The decision to try and free up the credit markets was made following lengthy debates at the National Unity Summit to Face the International Financial Crisis convened by President Leonel Fernandez.
More... (http://www.dr1.com/index.html#4)
Following suggestions from the financial institutions, the Monetary Board authorized the Superintendence of Banks to implement temporary measures to relax Evaluation of Assets (REA) banking norms in order to facilitate credit. These measures will come into effect on 16 February 2009. The overnight interest rate was cut to 6%, and Lombarda to 11.5%, announced the bank. The CB has reduced the Overnight rates by 3.5% and the Lombarda rates by 4.5% since 1 January 2009. Interest rates for preferential loans will also be reduced to 12% and 10%. The decision to try and free up the credit markets was made following lengthy debates at the National Unity Summit to Face the International Financial Crisis convened by President Leonel Fernandez.
More... (http://www.dr1.com/index.html#4)