Santo Domingo.- Starting this month the Banks Superintendence will cut credit card rates, which according to superintendent Rafael Camilo, will increase people’s income and spur consumption.
Upon making the announcement Tuesday, the official said interest rates will fall from 7% to 5.5% monthly from that date; to 5% in June 2014, and to 4.5% in January 2015
He said the cuts mean that cardholders will save RD$3.5 billion in the first year, RD$5.1 billion in June 2015, and RD$6.9 billion in January that same year.
He said the reductions stem from the credit card regulations approved by the Monetary Board on February 12, which provides for credit cards to take the rate of loans for consumption as the reference.
Camilo, speaking in a press conference at Superintendence headquarters accompanied by executives of Dominican Republic’s Banks Association, the S & League and the Credit Association, said to date the financial sector has 3.0 million cardholders.