Santo Domingo.- The banking norms on the additional methodologies or requirements for information to the Asset Evaluation Regulation indicate that the major debtors, which are those loans of more than RD$15 million, are evaluated by their payment capacity, an also take into account the collateral to sustain the loan amounts.

The information required for major debtors is basically the financial statement audited by an independent and recognized firm, and must be the same filed with the Internal Taxes Agency. This is only applies to amounts higher than RD$15 million.

To May 2008, 99.1 percent of all commercial debts, or 253,613 debtors, are evaluated based on their payment history. Only a small part, of 0.9 percent, or 2,319 debtors, requires their audited financial statements, and of these debtors only 844, or 0.3 percent of the entire banking sector, is evaluated based on the payment capacity and the latter is 60 percent of the total loan portfolio.

The information discards the positions of some sectors who say the banking norms restrict the credit access to productive sectors and small and medium companies. On the contrary, the norms facilitate credit, because they demand only compliance with their debt payment so they can have permanent access to credit.

The minor debtors, whose credit is less than RD$15 million, are evaluated by their payment history and payments in arrears, and by their un-audited financial statements filed, but with the signature of a certified public accountant. This is applied to debtors who request between RD$5 and RD$15 million.

The microcredit, aimed at small and medium companies, is evaluated based on the credit history and loan payments in arrears. They have a RD$5 million credit limit.

SOURCE: listin.com.do