Central Bank shows how to spread US$489.6M economic boost

Santo Domingo.- Central banker Hector Valdez Albizu, met Thursday with treasurers of commercial banks to explain the recent easing of monetary measures that seek to boost the economy.

He urged the executives to channel the released funds to productive sectors as stipulated in the first Monetary Board resolution of July 27, 2017, through new loans, according to the conditions explained in the instructions published on the Central Bank website, provided to financial intermediaries.

The Monetary Board resolution authorized a reduction of 2.2 percentage points of the required coefficient of legal reserve for financial intermediation entities, effective as of August 1, 2017,” Valdez said in a statement.

He said the measure releases RD$20.4 billion, in addition to RD$2.1 billion pending disbursement to the agro sector corresponding to the release of resources, towards that sector, authorized by the second resolution of December 8, 2016, and a RD$1.1 billion surplus from recoveries of previously released resources.

“This means that, adding up these three items, the total resources available for the economy amounts to RD$23.5 billion (US$489.6 million),” the official said, adding that the released funds can be channeled as follows: RD$4.5 billion for the export sector; RD$4 billion, or 20% for manufacturing; RD$1.7 billion (8%) for agro, totaling RD$2.1billion, for a total RD$3.8 billion.

Moreover, RD$4.0 billion (20%) for housing finance; RD$3.7 billion (18%) for retailers and MSMBs, and RD$2.5 billion (12%) for consumer loans, including new vehicles.