Businessmen Domingo Espinal Collado and Miguel Nu?ez, of the Asociacion Dominicana de Almacenistas Importadores (Asodai) complained to Hoy about the high cost the Monetary Board?s new strategy measures has for local businesses. They say that floating interest rates have soared to 52 percent for loans to small and medium sized enterprises. Loans greater than RD$1 million are being levied interest rates of 44 percent, and corporate loans are at a high of 42 percent. The interest rates shot up as the government curtailed money in circulation in the name of macroeconomic stability and to contain the run on the peso.
Some economists fear the new measures could lead to widespread closings of businesses of all sizes.