Daniel Toribio, Hector Valdez Albizu in the press conference.
SANTO DOMINGO. - Central banker Héctor Valdez Albizu announced that tomorrow Thursday the Monetary Board will allow that the funds from the legal balance be made more flexible, to lower the interest rates of current loans.
The Reservas also bank announced lower rates for its loans.
“We headed a meeting yesterday with the multiple service banks and the financial sector with the treasurers, and we’re also going to present the measures that allow the commercial banks to begin, based on the legal balance, to transfer the benefits to those who have the loans,” Valdez Albizu said.
Whereas Reservas bank administrator Daniel Toribio said a 5 percentage point reduction on the interest rate for the agro industry, manufacturing, micro and small company and the construction sector will be applied, to set that rate at 17 percent.
Toribio also said that to stimulate the housing sector, Reservas will establish in March a rate of 15% for all mortgage loans approved for new homes that don’t exceed 12 million pesos, and a period of up to 20 years.
He said that rate will remain unchanged until January 1, 2010, date on which the rate will be reviewed according to the market’s behavior.
From: Canada, Toronto ,Cabbagetown,Parliament and Gerrard
dread the Magic 8 Ball please
Written by: josean, 4 Mar 2009 3:08 PM
From: United States, Show your Love for DR Vote AGAINST the PLD!
I told you so! Now to single digits and get the peso to its real value and watch the economy take off!
From: Canada, Toronto ,Cabbagetown,Parliament and Gerrard
Did you ever ask yourself is your economy big enough? Do you feel insecure about the pork in your portfolio? Do you want to stop your Dow Jones from shrinking at the most embarrassing moments? It is finally possible with the only economy enlargement product that works. You can become a lean, mean and fierce economy-stimulating machine in just days! Satisfy your community's dream of having a representative with a massive Stimulus Package. Enhance, enlarge and upsize the economy today! Stop settling for second best, get your huge bailout here!
From: Canada, Toronto ,Cabbagetown,Parliament and Gerrard
Recent discoveries in social science have shown that, like everything else that the government touches, the economy can also grow beyond its current size and last long in a fossilized state when fully stimulated. Forget the old, flexible, trickle-down economy of the past! The new Economy Enlargement Stimulus Package will penetrate your community from the bottom up, distributing satisfaction equally for everybody.
Unlike tax cuts, Stimulus Package delivers results that are permanent. This is why nine out of ten TV economists call this life-changing product a breakthrough in the history of economic enlargement. Economic growth, as we know it, will never be the same
From: Canada, Toronto ,Cabbagetown,Parliament and Gerrard
Barney Frank: Voters always laughed at the size of my reputation, but then I discovered Stimulus Package I quickly gained a reputation that makes the voters scream. It grew 50% in just one week and I am a changed man...
Charles Schumer: The voters go wild and crazy once they see the size of my Stimulus Package.
I love how they say I got pork. I love multiple media orgasms. Forget about fake enthusiasm - the Stimulus Package will keep it strong, firm, and long-lasting.
Chris Dodd: You will be absolutely amazed when you see your economy gradually becoming LARGER and LARGER, right before your eyes! NOTHING compares to the feeling of having a larger economy.
Written by: vacanos, 4 Mar 2009 5:17 PM
From: United States, An appeaser is one who feeds a crocodile, hoping it will eat him last.
bush: nukular
Written by: generoso, 4 Mar 2009 6:36 PM
From: United States, Quisqueya
GC2
S.it it is better than viagra!
The rate at 15% and 17% is still usury and highway robbery, where is the deal here?
From: United States
GC, with the operating spreads that the banks have here, the return on deposits will probably fall to somewhere like 8% , which will cause a drop , even though 8 or 9 is fantastic compared to the interest in some countries. but a lot of investment is risky, and, with the numbers coming down to the single digits, money will look for safer harbors
From: Canada, Toronto ,Cabbagetown,Parliament and Gerrard
thanks for consulting the old Magic 8 Ball dread
From: United States, Orange County, California
15% home loans is still to expensive. That's why Dominicans cannot afford to buy properties. The rate for home loans should be around 7.5% or lower. Educational loans no more than 6.5%. 15% and 25% are ok for credit cards and short-terms small loans. Property is super expensive here is California and the average mortgage rate is just 5.18% after falling 4 basis points last week.
From: Canada
The Bank of Canada just lowered it's pref. lending rate to 0,5 today. In the next few days, the Banks will be offering loans for homes close to, if not under 4%. Same for people who want to start small businesses. Some rates will remain higher. However, when interest rates fall this much for those borrowing, they also fall for those investing! Many who have no "social" (work) pension plan invest a certain amount a year towards their personal pension plan. They won't get much interest out of that for a few years... It's not so bad when you are young and have many years ahead... Many young couples see it quite positively. Even if they fall back towards their pension, they could pay off more of their house, study loan, etc... I can't imagine how people in the DR could deal with such high interest rates. I was really not aware.
From: United States
well, canadafriend, try to imagine 15% interest on home loans for a college graduate who works in a call center, taking home 100 dollars per week. can you say "not likely"?
From: Canada, Toronto ,Cabbagetown,Parliament and Gerrard
Written by: locco, 5 Mar 2009 1:05 PM
From: Dominican Republic
right taking home $ 100.00 if their lucky i would personally like to see morgates at 10 % for 20 years may next time
From: Dominican Republic
So...interest aside....lets look at the everyday Dominican, earning thier $200 a month. Lets apply that total to purchasing a house over 20 years...interest free! That would by a $48,000 home. That would leave no money for anything else...no food...no water....no electricity....no taxes.
Ah...the Dominican dream!
From: United States
then, PuntaCana, add in the 15% interest over 20 years, and what have we got? close to 80 grand, maybe?
From: United States
Sounds like a step in a positive direction. Money is essentially free for banks in the US and EU, and so small nations should not fear to also prime the pump locally by freeing up more cash in their banking systems. The giants are no longer worried about inflation, so do as they DO and not as their court economists say. I think this banker has made a correct call in following the monetary easing strategy being employed in all the industrialized centers as we speak. .
canadafriend I understand your point but to keep society going in US/EU/etc. the young must eat old :P See the middle aged are trying to eat us by borrowing all this money against our future! In the case of DR I wonder how many are living off payments this way and if so are they actually relying on DR banks as their savings account? Surprising if so.
From: Canada, Toronto ,Cabbagetown,Parliament and Gerrard
highly dubious mortgages, greedy house-flippers, deceitful homebuyers.......how soon we forget
From: United States, NY/NJ
What many people don't realize is the fact that the interest rates have to be at a higher rate when compared to countries with more developed economies, unless you would all like to have your country bought up in a heartbeat. When these types of decisions are made they take into account currency exchange rates, and what the investor class (usually foreigners, or very wealthy Dominicans) would agree to pay ensuring reasonable profits. The majority of the public in DR can't afford the loans due to their incomes but they aren't going to just commit financial suicide for the country and basically make everything affordable. That type of thinking would just lead to massive deflation where more than likely wages would be reduced by employers even more continuing the endless cycle of businesses trying to make more money at the people's expenses. DR's national debt and main sources of income (foreign) are prime reason's why these rates are unaffordable for the locals, these policies are
From: United States, NY/NJ
necessary to avoid bankrupting the nation. People need to remember that even though things seem better compared to the Hipolito Mejia years, we are not fully recovered by a long shot. His parties corruption basically bankrupted the nation while allowing crime syndicates to enter the country in waves, thus the increased crime in the last 6 years, all so guys like Miguel Vargas can live while enjoying their $28,000,000 US Dollar mansions. (BTW, that is the value of his current home)
We as a people need to be cognizant of the larger picture when we speak out. Thus my firm belief that a sound educational system is the only way for RD to build and ensure a productive and competitive future as a nation.
From: United States
Analyst, the only way that the DR will become competitive is when people realise that only the best will do. sadly, that is not the case, and i do not blame the common man. when people save for years to buy a TV set, then it breaks in 4 months, they expect that the vendor will honor some kind of warranty. so, when people like Plaza Lama blow them off, what do you think these people are going to do to you....yes...they are going to fix your car in a half assed manner, and never return to honor the job. when Claro is out of service for interminable periods of time, and can only tell people MANANA, average Jose is not going to see the value in showing up early for work. and, when his TV service goes on Friday at 2pm, and he has to wait until Monday to have it looked at, then he is not going to work one minute past closing time. i have said it many a time, that what we need is good examples. sadly, they are in very short supply.
Smaller
Bigger
Close Gallery
Facebook
Digg this
del.icio.us
Technorati
Yahoo
Did you ever ask yourself is your economy big enough? Do you feel insecure about the pork in your portfolio? Do you want to stop your Dow Jones from shrinking at the most embarrassing moments? It is finally possible with the only economy enlargement product that works. You can become a lean, mean and fierce economy-stimulating machine in just days! Satisfy your community's dream of having a representative with a massive Stimulus Package. Enhance, enlarge and upsize the economy today! Stop settling for second best, get your huge bailout here!
Unlike tax cuts, Stimulus Package delivers results that are permanent. This is why nine out of ten TV economists call this life-changing product a breakthrough in the history of economic enlargement. Economic growth, as we know it, will never be the same
Charles Schumer: The voters go wild and crazy once they see the size of my Stimulus Package.
I love how they say I got pork. I love multiple media orgasms. Forget about fake enthusiasm - the Stimulus Package will keep it strong, firm, and long-lasting.
Chris Dodd: You will be absolutely amazed when you see your economy gradually becoming LARGER and LARGER, right before your eyes! NOTHING compares to the feeling of having a larger economy.
S.it it is better than viagra!
The rate at 15% and 17% is still usury and highway robbery, where is the deal here?
Ah...the Dominican dream!
canadafriend I understand your point but to keep society going in US/EU/etc. the young must eat old :P See the middle aged are trying to eat us by borrowing all this money against our future! In the case of DR I wonder how many are living off payments this way and if so are they actually relying on DR banks as their savings account? Surprising if so.
We as a people need to be cognizant of the larger picture when we speak out. Thus my firm belief that a sound educational system is the only way for RD to build and ensure a productive and competitive future as a nation.