Current Intrest Rates

[Escott]

The more time I spend with Alberto the more respect I have for the man and the way he does his business. I first started hanging out with him to both learn about Dominican Business practices and to keep an eye on my money. Now it is more because he has become a good friend than anything else.

Even though my reasons for spending time with him have changed I am still impressed by the way he does his business. Every time something comes up in his business and when I question him about it what comes out of his mouth never fails to impress me.

I am not impressed by many people and I don't find I can learn from most people. I am a very opinionated asshole who feels I know more than most people I come into contact with. I have learned an so much from him I can't even calculate the value. Those that know me here personally (which has grown to be many I am proud to say) know that I am a confident and capable person so when I say this about Alberto or anyone else they know I am not blowing smoke.

That being said, I have learned a lot about the Dominican Republic from this message board of of wacky misfits that inhabit this place and that has been priceless for me. Again I don't give compliments easy but this is how I feel.

Escott

 

[BushBaby]

Paul,
Have you met the gentleman from the Finance House we are mentioning? If not, I will gladly introduce you to him. Scott, Christ, Myself & MANY more, HAVE met him, some of us have been doing business with him for 5 years & never a moments problem. Couple of minor hiccups TRUE, but nothing that wasn't sorted out within 48 hours - TRY getting THAT sort of service from a Bank that makes a mistake on your account here in the DR!!!

Give me a call next time you are across this way (Puerto Plata) & I will gladly introduce you. Heck, I could even have him visit you on your patio if you prefer!!!

Best regards - Grahame
Hey Scott, what's this about you being an opinionated old F^*#? We that know you just think of you as a cuddly old F^*#!! See you next time you are down!!

 

[Paul Thate]

Not to worry.
I am such a bad judge of character meeting and liking the man
should not make a difference.
In the passed I have lend money to many people who I thought I knew and could trust.
And in most cases I was totally wrong.
Luckely I never lend more then I was prepared to loose any way.
I just wish I would learn to be a little less trusting.

 

[Escott]

Ah, I am whatever you want me to be

Paul does better in the bank than he would with Alberto since he gets a better interest from the bank on Pesos than Alberto would give him. He doesn't have the worries I have about putting US Dollars in a Dominican Bank and the government seizing them to pay their oil bills when they run out of US Dollars. He is completely in Pesos. For him and his goals his investments make sense.

I think that Dominican Banks are safe in Pesos and you should invest with banks in pesos if you can beat what Anoeca will give. Just keep your eye on the bank and listen for any news that may hurt you.

I also get a lot more interest on Dollars than the Banks pay. It is not a question of a better loan portfolio or having it spread across the country for risk because it sucks on the whole Island economically.

You just get all the info you can, do your due dilligence and take your best shot.

Hey a lot of people lost 40-55% on their investments because of the peso crapping out. Others here have posted that they haven't been able to get their money out of Baniter at all and these people I feel sorry for that they have either lost money or have a hard time getting it back. I hope the woman who posted about not being able to get her money out of Baniter keeps us posted about that. I want to know how she has done.

I am still glad I have a US Dollar income although I don't get 36% or even 24% which people are and have been getting in Pesos.

I am just trying to give info as I know it without making up info and maybes and could be's and possibilities so people can make their own decisions. When I bring up how I feel about the banks in the DR I also try to put down reasoning and fact in the message.

Still everyone thinks differently and have different goals.

 

[BushBaby]

The woman in question FINALLY (after 2 months of qrguments) got her money transferred into a Banco Central Certificate which they said HAD to run for one year. After a further two months of waiting (plus other cock-ups about paying out interest like "Oh, you want the money each month?? We thought you wanted it compounding?"!!!), she is now receiving her monthly income!! Who knows what will happen at the end of the years contract, maybe they WILL pay out & maybe Cows will be flying by then!! Anyway, as she only needs it as an income, she will not worry too much unless the rate of pesos to the US $ has deteriorated to a level that she can no longer live on the interest being paid in Pesos!! - See you soon 'Old Scotty' - Grahame.

 

[gringo in dr]

Just some information on the brothers in costa rica, they paid 3% cash per month for over 20 years. Never missed a payment until the government closed them down. Word on the street is some of the banks paid the government to disrupt their business.

Minimum deposit was $10,000.

 

[Paul Thate]

the brothers

If you are interested here is a news paper article with the full story.
some facinating reading.
http://www.post-gazette.com/localnews/20030511thebrothers0511p5.asp

 

[Peter & Alex]

It's all a risk ......

but I do wish that people would not try and state their opinions as fact!!
The Baninter fiasco was a fiasco but at least the CB bailed them investors out! People did get their money back and were invited/offered the CB outlet at a better %age rate of interest. Agreed that they've yet to find out what happens eventually but they really didn't lose a peso! They got 28% interest, paid monthly into their other bank savings accounts and the whole deal was backdated to the time of the application of transfer of certificate to CB from Baninter.
These punters are not financial wizards, as you all seem to be, just normal people who accept the risk and the commitment to live here and invest some of their capital in pesos and manage to live off that interest income. At the end of the day, if they only recover half of their original investment, what's the loss? They've still some capital left and have lived here paying their bills for x years!!
The financial wizards leave their money where it is, earning small interests in US$ and then draw down on it on a monthly or as required basis, change it into peso at the current day rate etc. etc. But then they're spending their capital aren't they?
I'm simple! What's the difference?

 

[Escott]

Yes, interesting reading. They paid 3 % a month. That is what I think the Central Bank of the DR is paying, right?

I was there in March. I spoke to many people involved with Brothers. It is the talk of the town. NO ONE didn't get paid before the government shut them down. They made every payment every time.

I get less than HALF of the interest rate you get from the Central Bank from Alberto. He loans money at a way higher rate of interest. What is the point about Brothers?

Scott

 

[Paul Thate]

[ What is the point about Brothers?

Scott [/B]

i have no idea , i just replied to gringo in Dr.
why he posted you got to ask him not me.

All the post seems to be rather defensive . I stand no where on this issue i just posted what I thought was an interesting article.
I did not state an opnion beside that it was interesting.

 

[Curt]

Back to the topic at hand

When you guys say 12%-14% USD & 21%-23% DOP those are annual intrest rates right?

So that would be 1%-1.16% USD & 1.75%-1.92% DOP Monthly?

And, by the way, it's all risky, thats why its lucrative. It all depends which avenue your better versed in.

Thanx for all the comments though, its makes for good reading. *L*