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Santo Domingo.- Dominican Republic’s biggest bank on Monday announced a special 6.95% rate for the export sector, so it can access financing in dollars.

Interviewed on Esferas del Poder program, Banco Popular vice president Edward Balderas called it a very attractive rate for small and medium-sized businesses.

The executive said the lower rate not only helps large export s but also provides solutions for small and medium-sized businesses as well.

Balderas said small exporters can now seek to become bigger and called on all those interested in getting into exports to come to the Popular for more information, as well as at ADOEXPO offices.

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COMMENTS
7 comment(s)
Written by: Radar, 30 Jun 2014 11:40 AM
From: Dominican Republic

6.95%.? Still too high.!

It shouldn't be more than 4%. At this rate, banks can still rake in mountains of $$$.
Still, this is a good sign that the typical bank's usurious interest charges, are now headed in the right direction.
If the economy maintains its growth, and inflation remains in check, the overall interests to consumers will continue its downward slide, to the benefit of all, lender and borrower.
Written by: bernies, 30 Jun 2014 1:31 PM
From: Dominican Republic, Juan Dolio
That is a very good start, so guys get in line and start sending your products to other nations. You can now export to more larger and civilized countries with the needs of tropical fruits and Veggies.
Written by: Ricardolito, 30 Jun 2014 4:04 PM
From: Dominican Republic, Zona Colonial
A commercial loan of 6.9% in a third world country is very good ,,just look at some prime lending rates in this area and latin america Venezuela 16 %, Argentina 17% Brazil 11% Only Chile and Colombia have lower rates at around 4% but these countries have economies far in advance of the Dominican Republic, Yes ,room to go lower but a great improvement on earlier years
Written by: Radar, 30 Jun 2014 5:48 PM
From: Dominican Republic

Ricardolito. Lending rates reflects on the actual health of the economy by the lender's confidence in the ability to recoup its investment plus profit.
High risks generally involve high rates. The amount charged by banks also denotes the number of loans made in a fiscal period, and amount of pesos in direct investments by these institutions. In other words, when the economy is deemed healthy, and said banks have experienced consecutive/uninterrupted periods of profitability and are awash with extra capital, they will soften demand by charging less.
Says me, who never took a course in economics and am merely speculating. What say you, Dr. Dread.?
Written by: generoso, 30 Jun 2014 7:00 PM
From: Dominican Republic, ****Raise your words, not your voice. Rain grows food, not thunder.****
It is a small progress but still too high, when you consider the "extras" that the bank will stick exporters with such as: application fee, legal fees, fees for assignment of RE titles (a must), and other "extras", so this 6.95% is a la carte rate, and probably just in US dollars, because they eliminate the exchange risk factor (3 to 4%). This is just like the 6 month inducement lower rate for automobiles, and they then go up to the usual stratospheric usury formulas.
The most profitable sectors of the DR economy are banking and communications, and they continue to fleece the public, every chance they get.
What exporters really need is a real "Export Bank" managed by the state, that does not require real estate as collateral, without a 3 to 1 guarantee ratio, which means if the property is appraised by the bank at $1 million, they would loan you 1/3 of that. Very little downside risk involved.
Written by: rokete, 30 Jun 2014 7:10 PM
From: Dominican Republic, (((( DEPORT THE HAITIANS, BUILD THE BORDER WALL !! ))))

It is not ideal, but it is a great start. Never thought I would see the day of such low rates in Dominicana. A step in the right direction is in order !!

Lets get the exports rolling, and Dollars coming back in bundles !!!

En hora buena !!!
Written by: Ricardolito, 30 Jun 2014 8:54 PM
From: Dominican Republic, Zona Colonial
Radar that is a little simplistic ,,and actually not correct .. for example the us economy is in a dreadful mess but you can borrow money very cheaply .and the argentine economy is in a dreadful mess and the banks lend money at about 17 or 18% ..so you can see it is more to do with the central bank and the policies they take. It is complex...when a country is dealing with high inflation the central bank may raise the interestrates to dampen the spending and that means interestrates are high //but if the economy needs a big shove along , then the central bank may reduce rates and lending becomes cheaper ...many other factors
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