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SANTO DOMINGO.- The Central Bank (BC) will disburse RD$2.46 billion of the unused funds in the legal balance, for temporary loans to build new houses, through banks and other financial entities.

Housing Builders and Promoters Association (Acoprovi) president Jaime González said its encouraging news for the sector and will help invigorate the economy.

The builders may access 40% of the funds available to August 10, or RD$6.2 billion, released via a second resolution on May 21; whereas the remaining 60%, or RD$3.7 billion, would remain to be used by intermediaries to meet the demand to finance new houses of up to RD$6 million.  

Of the amount released, the multiple banks will be able to provide temporary credits of up to RD$2.07 billion, the savings and loans associations up to RD$287.5 million, the savings and credit banks up to RD$87.1 million, and the credit corporations up to RD$18 million.

The measures aims to expedite the payment of funds released in the legal balance for up to RD$6 million in mortgage loans, with interest rates no higher than 12% during the first year and lower than 14% in the two following years, and included the rest of the economy’s sectors as beneficiaries.

The Central Bank will include the rest of the economy’s sectors among the beneficiaries of the funds released via the first resolution on February 12, equal to RD$1.20 billion.

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COMMENTS
6 comment(s)
Written by: clinker, 17 Aug 2009 4:02 PM
From: Dominican Republic
1. what are the interest rates (approx.)?
2. difficulty to obtain (banks need title before funding), etc ?
Written by: clinker, 17 Aug 2009 4:03 PM
From: Dominican Republic
btw, are those wood frame homes in rep dom? i did not think they had wood frame houses here...? any one know? buehler?
Written by: glomarexplorer, 17 Aug 2009 6:18 PM
From: United States, Fresh Water Paradise-NY Finger Lakes
clinker,

I was going to ask same question but you beat me to it.

Those clearly look like American homes!
Written by: Ricardolito, 17 Aug 2009 8:28 PM
From: Dominican Republic, vieja Santo Domingo
as normal . the detail is just as important as the statement and with interest rates around the 12 to 14 % ,I can not believe that there will be many builders wanting to speculate on selling homes if they have to borrow at those rates ...around the world most interest rates are very low at around 1 or 2 % and no more than 8% for mortgages. And the 6million pesos maximum which is about US$170,000 will build only a basic house for people who can least afford one
Written by: rodrigito, 18 Aug 2009 12:43 PM
From: United States
The rates in DR are approx 9%... however only for the first 2 years... on a 20 yr loan.
Written by: Ricardolito, 18 Aug 2009 3:38 PM
From: Dominican Republic, vieja Santo Domingo
yes rodrigito so why does the government permit the banks a maximum rate of 12 % in the first year and 14 % in the next two when even 9% is above the world norm and when the governemnt now can itself borrow for less than 6%.
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