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Central Bank: RD$20.0B reserve at 9% will help pending loans

Santo Domingo.- Central banker Hector Valdez on Tuesday said the fixed 9% annual rate for six years will benefit people with pending debts, with the release of the RD$20.0 billion reserve from banks.

“That will drag the loans already placed and there’ll be a major adjustment in the interest rate to benefit all credit users,” the official said in the National Palace after meeting with president Danilo Medina.

“If a person has a housing loan or a commitment with a bank, the interest rate being paid with the release of the funds at 9% for six years and added to the Monetary Board’s new measure, to include small borrowers, that will also affect the channeling of credit, then it will produce a domino effect that will also benefit those who aren’t in the program and have commitments with the banks,” he said.

The release of the RD$20 billion reserve, Valdez said, has been widely accepted, reiterating it will influence interest rates and help recover the economy. “An example of that was Mother’s Day, when crowds swamped the stores.”

Valdez added that the Central Bank is disbursing around RD$4.0 billion every week to meet credit demands of the various economic sectors.

Source: DT

Category: DR News |

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Last updated December 4, 2016 at 1:52 AM
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