Dominican industries still timid despite securities market growth

Santo Domingo.- The issue of bonds and insertion of industrial companies in the country’s securities market have been very limited despite its growth, Dominican Industries Association president (AIRD) Campos De Moya affirmed Thursday.

He said only 1.65% of the pension fund is placed in the hands of productive entities, many of whose experiences with industries hasn’t been entirely positive, for which it’s no coincidence that the country’s biggest issuers today are the Finance Ministry of and the Central Bank.

Speaking in the AIRD breakfast on the topic “Dominican Securities Market Dynamics and Prospects" De Moya said it’s extremely important for the AIRD that the new legal framework remedies market aspects that restrict and discourage productive entities from entering that market.

He requested guarantees by law and not through regulations, special conditions for dealing with SMEs that want to venture into the securities market and have moderate corporate governance demands for companies “adhering to the reality of family businesses we have in the country and which of course aren’t bigger than those established in the Monetary and Financial Law."

"We’re opening our eyes in our country since we’ve been gradually developing new financial instruments and mechanisms of access to financial funding, such as BANDEX, trusts, factoring, guarantee funds, joint guarantee and we’re trying to strengthen the market" the industrial leader said

He thanked Securities Superintendent Gabriel Castro and his team for attending the activity to explain in detail the bill that established important changes to the securities market’s regulatory framework. "We expect to be the result of a broad consensus among all stakeholders, especially those of us who use these instruments as a source of productive development."