SANTO DOMINGO.- The State-owned bank Banreservas’ more than five percentage-point reduction in the interest rate that includes 15% for mortgages of up to RD$12 million, as well as the Central Bank’s persistent influence to lower them for current loans has piqued builders’ and retailers’ interest.

The presidents of the housing promoters and builders grouped in Acoprovi, Jaime González, and of the Agribusiness Board, Jose Ramon Peralta and of the Provision Retailers Council, Rafael Santos, hailed the lower interest rates they say benefits everyone, including customers and businesses.

He said the measures which have been taken in consumption are encouraging for his sector, since in his view spur people to buy their homes.

González also requested significantly lower interest rates for temporary loans, to motivate not only buyers, but also builders and promoters so they can build more houses. "We’re sure that if the interest rate falls for temporary loans, those which prompt promoters and builders to build, we’ll be able to obtain a greater dynamism in the construction sector the next half of this year."

The Acoprovi president said they expect other financial institutions to announce reductions, because otherwise it would be unfair competition.

He said the rate for promoters and builders is still around 26%, levels he says make it very difficult to remain motivated.

In that regard, the Codepro president called positive the fact Banreservas reduced the interest rates, especially those which contribute to invigorate the productive activities and lower operational costs of the national productive sector, the micro and the small industrialist.

Santos said Banreservas’ policy to lower the interest rates will bring about a positive effect, since the other banks will be forced to continue readjusting their rates. He added that a lower price for money alleviates his sector.