NewsWhore
05-26-2009, 02:30 PM
The Monetary Board has authorized a reduction in the legal reserve applied to financial intermediaries that will increase the resources available for housing and small businesses by some RD$9.1 billion, according to Central Bank governor Hector Valdez Albizu. Diario Libre reports that Valdez Albizu said that the disposition, which comes into force today, reduces the legal reserve in the commercial multi-banks from 20% to 17%, equal to RD$7.67 billion.
With the freeing up of RD$10.5 billion in February, of which RD$5.0 has been disbursed, the Monetary Board will have freed up resources exceeding RD$19.6 billion to be channeled to the small and medium businesses, farming, construction, local manufacturing and for government bond issues.
Of the RD$7.67 billion, RD$6.13 billion of these funds will be targeted at new home mortgage loans for housing worth less than RD$6 million, with an interest rate of between 9% and 14% for the first three years of the loan, beginning with an interest rate of less than 12%. Valdez Albizu said that the remaining RD$1.53 billion should be channeled to micro-, medium- and small-scale businesses through a process coordinated with the government through Promipyme.
The Monetary Board also ordered a reduction in the legal reserve for Savings and Loan Associations, credit and savings banks and the credit corporations from 15% to 13%, which equals the RD$1.53 billion. Of that amount, RD$1.255 billion comes from the S&Ls and RD$233 million comes from the savings and credit banks and RD$45 million from the credit corporations, steps with which the Monetary Board is trying to push the financing of economic and middle class housing and reduce volatility of interest rates. For constructors and housing promoters, the announcement made by the Central Bank governor is a very important and historical measure that they expect will help many Dominicans acquire their own homes. Jose Rodriguez Caceres, the founder of the entity, says that this measure will create a "before" and an "after" and that builders and promoters congratulate the government's will to facilitate housing operations, which will revitalize the construction industry.
More... (http://www.dr1.com/index.html#2)
With the freeing up of RD$10.5 billion in February, of which RD$5.0 has been disbursed, the Monetary Board will have freed up resources exceeding RD$19.6 billion to be channeled to the small and medium businesses, farming, construction, local manufacturing and for government bond issues.
Of the RD$7.67 billion, RD$6.13 billion of these funds will be targeted at new home mortgage loans for housing worth less than RD$6 million, with an interest rate of between 9% and 14% for the first three years of the loan, beginning with an interest rate of less than 12%. Valdez Albizu said that the remaining RD$1.53 billion should be channeled to micro-, medium- and small-scale businesses through a process coordinated with the government through Promipyme.
The Monetary Board also ordered a reduction in the legal reserve for Savings and Loan Associations, credit and savings banks and the credit corporations from 15% to 13%, which equals the RD$1.53 billion. Of that amount, RD$1.255 billion comes from the S&Ls and RD$233 million comes from the savings and credit banks and RD$45 million from the credit corporations, steps with which the Monetary Board is trying to push the financing of economic and middle class housing and reduce volatility of interest rates. For constructors and housing promoters, the announcement made by the Central Bank governor is a very important and historical measure that they expect will help many Dominicans acquire their own homes. Jose Rodriguez Caceres, the founder of the entity, says that this measure will create a "before" and an "after" and that builders and promoters congratulate the government's will to facilitate housing operations, which will revitalize the construction industry.
More... (http://www.dr1.com/index.html#2)