Spokesmen for the Dominican Chamber of Construction warned of layoffs and shutdowns in the construction business as the industry reacts to the new rules of the game. Diego de Moya, president of the organization, told Hoy newspaper that the high interest rates and the new tax structure is hurting business. He said the government forces "involuntary financing" on its public works contractors by delaying payments and that also hurts the sector. De Moya said the increase in the prime lending rate from 16 to 32% over a period of less than a year is unmanageable. He said the high interest rates on home loans make buying a home off limits for most. He said that home mortgages have gone up from 18 to 24-26%. "With interest rates like that, only a very few can buy a home," he said. De Moya attributed the past bonanza in the sector to the macroeconomic stability, cost of labor, controlled inflation and prime rates of 16-22%.
