The Dominican Republic Stock Exchange (Bolsa de Valores de la República Dominicana – BVRD) announced on Tuesday, 31 January 2017, that RD$25.49 billion was transacted in 14 bonds and commercial papers operations in 2016, according to Hamlet Hermann, vice president and general manager of the BVRD.
Hermann stressed: “It is a priority of the agenda of all the stakeholders of the Dominican securities market to promote that more businesses become aware of the multiple benefits of the financing through the diverse products the Exchange offers to meet the needs of capital investment for the development of infrastructure, the purchase of equipment, and general growth and expansion of operations. The securities market is one of the most viable alternatives to finance these projects, while contributing to the economic development of the country.”
Hermann said that 2016 was marked by the consolidation of new investment instruments and the sustained growth. There was sustained growth in fixed income and variable income securities, as well as in the bonds placed by the Ministry of Hacienda.
Hermann said that RD$271 billion in transactions were recorded in the secondary market at the BVRD and its affiliated systems. He said in 2016 public debt bonds were 98% of the total transacted, with 9% in corporate bonds issued. He said the Hacienda bonds have increased their participation in the fixed income secondary market, from 63% in 2015 to 72% last year.
Hermann said in the short term, the BVRD is working on a new scheme for cashing in securities operations, designed to increase the transacted volumes. Foreign consultants will be hired this year for a diagnostics of the Dominican securities market, and to obtain recommendations of the best international practices to contribute to the comprehensive strategic planning of the BVRD given its predominant role in the country’s securities market.
He said he is optimistic that securities transactions will continue to increase in 2017, and especially when the National Congress passes the new Securities Market Bill.
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Acento
Bolsa de Valores
1 February 2017
