Is this true about the intrest rate?

SunRa

*** Sin Bin ***
Mar 30, 2003
56
0
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"US Dollar Bank time deposits (CD's) pay up to 10% at
the moment, and if you are going to live in the country, then deposits paying up to 22% in Dominican Pesos might be worthwhile as well. "

I got that from another website, is it true that banks pay out @ 22% intrest in pesos?
 

ustelephone

Member
Mar 31, 2004
361
2
18
www.ecoislandadventures.com
Yes, it's true.

The rates you mentioned are true, in fact, you may find higher. Just be aware of the reason behind the high rates; Risk. Not to much risk, but I wouldn't put more than half of your eggs in this basket.
 

BushBaby

Silver
Jan 1, 2002
3,829
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SunRa said:
"US Dollar Bank time deposits (CD's) pay up to 10% at
the moment, and if you are going to live in the country, then deposits paying up to 22% in Dominican Pesos might be worthwhile as well. "

I got that from another website, is it true that banks pay out @ 22% intrest in pesos?

At the moment these rates CAN be received but the US $ rate is unlikely to be acheivable in a Dominican Bank!! This is more from the Finance Houses!! Please. please, PLEASE do your homework well though. Check the archives on this board for the Keywords "Investing in the DR", "Dominican Bank Interest rates", "Paper CD's" & "Finance Houses" & I think you will get enough information for it to be coming out of your ears!! It is a subject that has been WELL covered.

Be aware of the current political & economic climate too as it is likely that some form of 'Income Tax' may well be levied on investment income shortly, so knowing "Where" to invest will become a little more sensitive if you wish to avoid DR taxes & at the same time only advise your own country's IRS what you wish to tell them about!! - Grahame.
 

Chris

Gold
Oct 21, 2002
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www.caribbetech.com
Escott said:
Just beware of some people that make like they are doing you a favor but are actually making money off of you. They will then try to make you feel indebted to them for all their help.

Hey Escott, what's with you? go back to bed, lie down, and get up again, this time with the right foot. And then go and have your breakfast and also on the way, let sleeping dogs lie! :rolleyes:
 

Chris

Gold
Oct 21, 2002
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BushBaby said:
Be aware of the current political & economic climate too as it is likely that some form of 'Income Tax' may well be levied on investment income shortly, so knowing "Where" to invest will become a little more sensitive if you wish to avoid DR taxes & at the same time only advise your own country's IRS what you wish to tell them about!! - Grahame.

This is an interesting point. Does anyone have knowledge of what the proposals are at this stage in terms of investment taxes? And is it on the drawing board that finance houses will be included, same as banks? If not, wow, what a business opportunity! I also cannot see that the IRS or the tax authorities from other countries would be too interested in finance houses. But then again, there is a wack of new legislation from the US side dealing with 'transparency' in financial transactions - apparent reason being to stop laundering of drug money. I know with the Turks and Caicos banks, they've had to agree to divulge some information to the US authorities.

So, this one will be interesting. If finance houses are to comply with legislation to give the authorities to necessary info to tax investment income, it will certainly ruffle some feathers.
 

chuckuindy

Bronze
Mar 8, 2004
1,372
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Loan Sharking

I have a Dominican friend in La Romana who lives off of lending money to several of the locals in that city. He is not a banker nor does he run a cambio. He is just a guy that loans money and he is making a very good living off of it.

Here is how his loan business works. He loans money only to working men and women. They either work in the CR sugar factory or in the Free Zone. All must have a bank account and all must have their wages direct deposited in a local bank. He charges 10% interests, that is 10% per week, which I believe is around 120% APR. He is a dual signer on each persons account and is issued an ATM card and PIN number for each account.

Each pay day he goes to an ATM machine armed with a fist full of ATM cards and small envelopes. He knows the exact time the payroll will hit the bank. Each debtors account is debited for the amounts of principal and interest established for that pay period. He puts the name of the debtor and the amount paid on each account on envelope then stuffs the money into the envelope. In most cases he has secured some type of collateral for the loan. A car title, mortgage on a home, or some other real asset which he can quickly dispose of should the loan go into default.

I have asked him about the legality of this in the DR and I am not sure that I have ever got a straight answer. Is this a common practice in the DR? If so I have some disposable income that I may want to risk in this type of venture.

Charlie
 

Camden Tom

Bronze
Dec 1, 2002
736
39
0
chuckuindy said:
I have a Dominican friend in La Romana who lives off of lending money to several of the locals in that city. He is not a banker nor does he run a cambio. He is just a guy that loans money and he is making a very good living off of it.

Here is how his loan business works. He loans money only to working men and women. They either work in the CR sugar factory or in the Free Zone. All must have a bank account and all must have their wages direct deposited in a local bank. He charges 10% interests, that is 10% per week, which I believe is around 120% APR. He is a dual signer on each persons account and is issued an ATM card and PIN number for each account.

Each pay day he goes to an ATM machine armed with a fist full of ATM cards and small envelopes. He knows the exact time the payroll will hit the bank. Each debtors account is debited for the amounts of principal and interest established for that pay period. He puts the name of the debtor and the amount paid on each account on envelope then stuffs the money into the envelope. In most cases he has secured some type of collateral for the loan. A car title, mortgage on a home, or some other real asset which he can quickly dispose of should the loan go into default.

I have asked him about the legality of this in the DR and I am not sure that I have ever got a straight answer. Is this a common practice in the DR? If so I have some disposable income that I may want to risk in this type of venture.

Charlie

Actually, the APR would exceed 500%.
 

Lambada

Gold
Mar 4, 2004
9,478
410
0
80
www.ginniebedggood.com
Yes, Chuckuindy, it is very common practice!!

There are, in my experience down here, 2 types of "loan shark" operations. The finance houses, which are legal & which use legal measures against defaulters. I have had a number of years experience with one in particular. Then there are the street operations, some like your friend, some like the compra-ventas & some run by colmados or neighbourhood tigueres. I have also invested (small!) sums in these outfits, mostly to get the experience, always being aware I could loose it. Some of them use less legal methods to deal with defaulters, like knee capping or worse. I removed myself from the scene when I discovered that!! If you do get involved, Chuck, ALWAYS have a Dominican do the actual loaning out of the money. It really is too tough a game for a gringo!
 

Escott

Gold
Jan 14, 2002
7,716
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Chris said:
Hey Escott, what's with you? go back to bed, lie down, and get up again, this time with the right foot. And then go and have your breakfast and also on the way, let sleeping dogs lie! :rolleyes:
I had alreeady had a great breakfast. I am now having lunch.

What a great day. Spent time at the pool chatting with Alan and Mary and now filling my stomach again.

Nothing can be finer than my day so far. How is your day?

I was just telling it like it is and shall continue to every day I see an injustice.

Scott
 

Chris

Gold
Oct 21, 2002
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Escott said:
I had alreeady had a great breakfast. I am now having lunch.

What a great day. Spent time at the pool chatting with Alan and Mary and now filling my stomach again.

Nothing can be finer than my day so far. How is your day?

I was just telling it like it is and shall continue to every day I see an injustice.

Scott

Actually, now that I think of it, my day is quite amazing. Lots of movement in lots of areas and a tiny bit of positive progress in an area of my life that really really counts the most! There is a lovely breeze blowing here on the hilltop, the neighbors are quiet :classic:, la luz is behaving (famous last words, the power just left, I love you Mr Mike but I love your inverters more!) the inverter lights are all nicely in the green, the dogs are quietly slobbering in the shade, Hubby is chilling out reading a book at the pool and plying me with nice goodies to eat and drink and I'm working as usual - and playing a little on the board as well - slowly getting ready to leave on a business trip.

Sometimes what seems to be an injustice, is really simply the way people choose to be. Our community is very small and there is no way that one can please everyone. I'm learning this lesson the hard way and these days I am very particular as to what I do with my money and who I spend time with.

Closer to the thread, I do like a 500% APR, but I don't like breaking kneecaps. So, now we have to figure out how to earn this without having to break kneecaps?