Small and medium-sized businesses complained. Economist Jaime Aristy Escuder demanded an explanation as to who received the first RD$60 billion the Central Bank said was available in low-cost loans through private banks to stimulate the economy.
As reported in El Caribe, Aristy Escuder stated: “This situation has to be clarified to know if two or three people borrowed the 60 billion pesos… and what they are doing is taking loans that were at 16% and lowering it to 9%, because this is not the way to reactivate the economy. The economy is reactivated if there are new loans for new projects,” added Aristy Escuder.
In its most recent session, the Monetary Board approved an extra RD$25 billion for the same purpose.
The Monetary Board approved the additional RD$25 billion in Rapid Liquidity Facility (FLR), bringing the total amount of resources injected recently into the economy from RD$94 billion to RD$119 billion.
Some RD$60 billion were gulped up immediately through the FLR. The Central Bank says another RD$59 billion are available to finance productive sectors and households at low interest rates. The new funds are available at 9% per year, compared to the previous funds lent at 16% during 2022-2023, when inflation was taking its toll on lending.
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Central Bank
El Caribe
N Digital
20 June 2023