Somewhat contrary to the statements made by the Central Bank governor, Hoy newspaper’s economic editor Mario Mendez writes that the banks have as much as RD$45 billion in liquid assets that they can’t lend to the business sector because of the new credit restrictions imposed by the IMF to avoid another banking crisis. Mendez cites sources in Santo Domingo, Santiago, San Francisco de Macoris, Puerto Plata and “other places” as “being in difficulties.” According to the journalist, the commercial establishments are having trouble keeping up their payments to banks and suppliers. Mendez cites the president of the Dominican Federation of Merchants, Ivan de Jesus Garcia, who explained that while consumer loans are available at 15% APR, investment loans are at 32% and 34% APR. Garcia pointed out the recent flurry of ad campaigns that push consumer loans as a way for the banks to get rid of some of the money that is just sitting in their vaults. The new rules for evaluating assets only allow companies in the “A” or “B” category to qualify for the easiest bank loans, and Garcia says that most commercial establishments do not make the grade and that is why the banks have to require a higher interest rate. The government now requires that the statement presented by the companies to the Department of Taxes be the only valid statement for lending qualifying purposes.<\/p>\n","protected":false},"excerpt":{"rendered":"
Somewhat contrary to the statements made by the Central Bank governor, Hoy newspaper’s economic editor Mario Mendez writes that the banks have as much as RD$45 billion in liquid assets that they can’t lend to the business sector because of the new credit restrictions imposed by the IMF to avoid another banking crisis. Mendez cites … <\/p>\n