The Central Bank of the Dominican Republic (BCRD) has authorized the release of RD$35 billion to stimulate the housing market. This decision, announced by Central Bank Governor Hector Valdez Albizu during a meeting with heads of multiple banks, aims to increase lending for home purchases, interim loans, and construction.
The funds, equivalent to 1.75% of the required legal reserve, will be channeled through financial institutions at an annual interest rate of up to 10%. A significant portion of the allocation, RD$14 billion, is specifically earmarked for low-cost housing, defined as homes valued at RD$5,025,380.75 or less.
“This measure, along with other liquidity-enhancing actions taken by the Central Bank, will contribute to accelerating the transmission mechanism of monetary policy and reducing interest rates on loans to productive sectors and households,” said Valdez Albizu.
The announcement of the extra funds for housing is in addition to the injection of RD$175 billion to stimulate the economy at the end of 2024.
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Central Bank
28 November 2024