The Monetary Board has eased regulatory requirements for evaluating and granting credits for minor borrowers, including the small and medium companies (Pymes). The measures were adopted during the last session of the Monetary Board that was held on Thursday 23 May, and they go into effect immediately with the freeing up of RD$20 billion from the legal reserves. This money is to be channeled to loans for the manufacturing sector, farming, housing, medium and small companies and for consumer loans at a fixed rate of 9% a year and a term of up to six years. According to the dispositions, they are trying and bring about a carryover effect with lower interest rates, in benefit of borrowers, as well as trying to increase the push that the monetary authorities say is being observed in the country’s economic activities.
Diario Libre reports that the monetary and financial authorities make sure that Small Commercial Borrowers, whose consolidated obligations do not exceed the sum of RD$25 million, independent of whoever is the beneficiary of the credit, are classified on their payment history or for arrears on their repayments. According to a press release, with these dispositions the board also intends to contribute to extending and facilitating access to credit for smaller borrowers, including the Pymes, without taking into consideration the sales volume, a criteria that was included implicitly in the resolution made on 21 March, which was modified at the Monetary Board meeting.