Law 122-21 transforms the National Export Bank into the Development and Export Bank (Bandex). The new role of Bandex is to channel resources to support projects of high economic and social impact for the Dominican Republic. Bandex will now offer financing with longer terms and grace periods than commercial banks.
General manager Juan Mustafa Michel said Bandex will now serve as a bridge between the productive sectors and sources of international financing, such as the US Eximbank and the export credit agencies of the United Kingdom and France. It will also channel funds from the European Investment Bank, the Inter-American Development Bank, the Central American Bank for Economic Integration and other multilateral cooperation agencies.
Michel says the Bandex portfolio will expand to RD$5 billion by 2024 and RD$17 billion by 2026, with the launch of new financial products, national and international lines of credit, loans with longer terms and lower rates, second tier channel transactions and the administration of guarantee funds.
In years past, government borrowing from foreign export credit agencies, including US Eximbank, resulted in major corruption scandals.
15 July 2021