Dominican Republic: US$141.3M in loans for flood-ravaged farms
Santo Domingo.- The Monetary Board on Thursday authorized the release of RD$5.07 billion from the bank reserve and RD$1.5 billion from the State-owned Reservas bank (a total of US$141.3 million) to provide loans for the agro sector affected by flooding mostly in the northern region, declared a disaster area by president Danilo Medina.
The RD$1.5 billion from the Reservas will be loaned through the Banco Agricola, as well as the RD$1.0 billion released by Medina a few days ago.
Upon making the announcement Central banker Hector Valdez Albizu said the funds will be gradually available as of next Monday.
He said to access the funds the recipient must submit an already signed and agreed contract, with specifications such as the number of hectares and the crop to be planted.
Valdez said the funds will be loaned at a 9% rate annually, with no installment during the first year.
Moreover, the Monetary Board approved a provisional regulatory exemption to improve the credit conditions in effect for the agro sector, including a one-year freeze of the agricultural portfolio’s current provisions as of October 31.
Dec 9, 2016
Category: DR News |