Access to credit for small and medium-size enterprises to be expanded in Dominican Republic
SANTO DOMINGO, Dominican Republic — The Dominican Republic will increase productivity for micro-, small, and medium-sized enterprises (MSMEs) with the help of a loan for $30 million from the Inter-American Development Bank (IDB).
The project seeks to increase productivity for MSMEs by facilitating access to medium- and long-term credit, and to improve the management of MSMEs and the public sector support they receive.
Ninety-seven percent of Dominican enterprises are MSMEs, and these account for 30 percent of the country’s gross domestic product and more than two million jobs. By targeting MSMEs, the program will help to increase the country’s sustainable economic growth.
The project will create a credit fund supported by a guarantee fund — both second tier vehicles — to facilitate access to medium- and long-term credit through intermediate financial institutions. The credit will finance investment projects, permanent working capital, and technical assistance. The program will also improve the quantity, quality, and relevance of non-financial services for MSMEs and help to solve the problems of lack of coordination of public management support and lack of current statistical information on the sector.
The project is expected to increase labor productivity and sales among MSMEs, the number of firms that export, and the loan repayment periods MSMEs are able to obtain.
Source: Caribbean News Now
Category: DR News |