NewsWhore
03-17-2009, 06:20 PM
Central Bank (CB) governor Hector Valdez Albizu and the Dominican Association of Commercial Banks (ABA) have both issued statements that said, in effect, that interest rates on loans are going down as a result of the measures ordered by the Monetary Board. Although they did not name names, both entities were no doubt referring to recent statements from the Herrera Industries Association that stated the contrary, saying that interest rates were in fact going up. The CB governor stated categorically that interest rates on the financial markets had begun a process of reduction compared to the December 2008 levels. The lower rates are for loans and for interest payments on deposits.
Valdez Albizu said that the active rates had gone down by 2.15%, going from 23.96% to 21.79% as of March 2009. Commercial loans were also cited as going from 23.47% to 21.16%, a 2.31% drop.
The governor said, according to Hoy newspaper, "These lower rates are just marking the beginning of a substantial reduction in the cost of money that should be consolidated in the next few weeks."
The Central Bank has been adopting measures to accelerate the transfer of lower interest rates, as for example freeing up the legal reserves.
Valdez Albizu reminded reporters of the announcement made by the administrator of the Banco de Reservas (BanReservas), which began offering mortgage loans at 15% and preferential loans at 17%.
The ABA presented slightly different numbers, but confirmed the trend towards lower interest rates on bank loans, going from 25.2% in January to 21.8% in March 2009. The association, which represents the twelve commercial banks in the Dominican Republic, confirmed that the lower price of money is the result of the measures taken by the monetary authorities.
More... (http://www.dr1.com/index.html#3)
Valdez Albizu said that the active rates had gone down by 2.15%, going from 23.96% to 21.79% as of March 2009. Commercial loans were also cited as going from 23.47% to 21.16%, a 2.31% drop.
The governor said, according to Hoy newspaper, "These lower rates are just marking the beginning of a substantial reduction in the cost of money that should be consolidated in the next few weeks."
The Central Bank has been adopting measures to accelerate the transfer of lower interest rates, as for example freeing up the legal reserves.
Valdez Albizu reminded reporters of the announcement made by the administrator of the Banco de Reservas (BanReservas), which began offering mortgage loans at 15% and preferential loans at 17%.
The ABA presented slightly different numbers, but confirmed the trend towards lower interest rates on bank loans, going from 25.2% in January to 21.8% in March 2009. The association, which represents the twelve commercial banks in the Dominican Republic, confirmed that the lower price of money is the result of the measures taken by the monetary authorities.
More... (http://www.dr1.com/index.html#3)