Thursday, March 23, 2023

Monetary Board authorizes RD$21,424.4 million to the construction sector for low-cost housing

The Monetary Board authorized the relocation of RD$21,424.4 million to the construction sector with the aim of facilitating access to a first home for Dominican families, the Central Bank reported on Tuesday after a meeting held with representatives of this productive segment to review the facilities granted by the monetary authority at the end of 2022.

Of this amount, corresponding to resources released from the legal reserve in 2017 and which will be added to initiatives such as the Itbis Bond and the Rate Bond, 80% of them will be used to finance low-cost housing, while the remaining 20% ​​will be aimed at interim loans for its construction which, together with the tax benefits granted for this type of construction, would boost its offer.

Financial intermediation entities must channel this financing at an interest rate that does not exceed 9% per year, in terms of up to five years for home purchasers and two years for construction (interim).

The governor of the monetary entity, Héctor Valdez Albizu, pointed out that the construction sector is very important for the development of the Dominican Republic due to its multiplier effect on investment and economic activity, being a great generator of jobs.

“An economy that does not build does not advance as desired by a country, not only in terms of housing, but also in the creation of key infrastructures for growth and development,” he said.

For their part, the representatives of the Dominican construction sector expressed their satisfaction with this measure, evaluating that during this year until 2024 it would be possible to develop around 10,000 low-cost housing solutions under the loan conditions outlined, thanks to the facilities provided by the Monetary Board.

They expressed their determined intention to work together “for the success of these measures”, indicating that they are optimistic regarding their performance in 2023, under the supervision of the Central Bank.

The governor was accompanied by the lieutenant governor of the BCRD, Clarissa de la Rocha de Torres; the manager, Ervin Novas Bello; the assistant manager of Monetary, Exchange and Financial Policies, Joel Tejeda Comprés; the deputy manager of National Accounts and Economic Statistics, Ramón González Hernández; and the economic adviser to the Government, Julio Andújar Scheker.

Also present were the director of the Department of National Accounts and Economic Statistics, Elina Rosario; the director of the Department of Monetary Programming and Economic Studies, Joel González; and the director of the Department of Regulation and Financial Stability, Carlos Delgado.

The delegation from the construction sector was made up of the president of the Dominican Association of Home Builders and Developers (Acoprovi), Jorge Montalvo; the president of the Dominican Chamber of Construction (Cadocon) Raúl Rizek; the president of the Cibao Association of Home Builders and Developers (Aprocovici), Alejandro Fondeur; and the engineer Rafael Bisonó.

Likewise, there were the members of the board of directors, Erick Bueno, Annerys Meléndez, Guido Rosario, Santiago Colomé, Fermín Acosta, Jaime González and Héctor Bretón.


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