Economy June 17, 2016 | 8:25 am

Top official balks at rumors on Dominican Republic State-owned bank

Santo Domingo.- Central banker Hector Valdez Albizu on Thursdaydenied that the State-owned Reservas bank and said lacks liquidity, on thecontrary, “the bank has surplus reserves in dollars and pesos.”

He said Reservas has a solvency ratio of 16.89%, with whichin his view “far exceeds the level required by the Monetary and Financial Law,which is 10%.”

He said the Dominican financial system’s entities ingeneral are strong, indicating that the latest indicators reflect that situation.“In fact, comparing the growth rate of total system’s assets, May 2016 with May2015 amounted to 9.06%m with a level of return on equity of 15.49% and a portfolioof arrears of only 1.94%.”

Surplus

In an emailed statement, Valdez also noted that as ofyesterday, financial institutions have deposited in the Central Bank a surplusof RD$23.2 billion in overnight deposits, and an excess of reserve in nationalcurrency of RD$1.79 billion and foreign currency of US$341.3 million.

The official’s statement comes in the heels of rumors that theReservas bank exceeded its financing limit in a loan for the construction ofthe coal-fired plants at Catalina, Peravia (south).

He called the report on the Reservas bank citing the group NationalCommittee to Combat Climate Change (CNLCC) published by several online outlets onJune 15, "unconscionable and defamatory."

Valdez stressed that the Reservas bank hasn’t undergone problemsof reserve during at least the last 30 years and on the contrary, “has beencharacterized by strict adherence to the reserve requirement policy and other bankingrules and prudential compliance under the provisions of the Monetary andFinancial Law 183-02 of 21 November 2002 and its implementing regulations.”

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