Dominican Republic approves US$227.3M for low-cost housing

Santo Domingo.- Dominican Republic’s Central Bank on Thursday said it has been authorized to promote the massive construction of low-cost housing, and support public-private projects in adherence to the Mortgage Market and Trust Law 189-11, among other initiatives.

On its website the Central Bank said Monetary Board Resolution issued March 26 authorizes as much as RD$10.0 billion (US$227.3 million) from the banks’ and S & Ls’ reserve to encourage low rate, long term mortgage lending, with funding from the Pension Fund.

The Central Bank said it was authorized to consider fixed rate securities and other eligible papers as reserve requirement, to replace a proportion of the required cash reserve equal up to RD$10.0 billion, to facilitate, through financial institutions interim loans for builders at rates up to 6% and term of up to two years, as well as up to RD$2.4 billion in loans at 8% and up to 20 years for housing buyers.