BC reports that RD$1,389.2 million of the legal reserve for low-cost housing has been disbursed

The Central Bank (BCRD) reported that, as of March 27, 2023, financial intermediation entities have granted financing for the acquisition and construction of low-cost housing for a value of RD$1,389.2 million. These resources have been placed as part of the legal reserve release program approved by the Monetary Board (JM) in January 2023 for an amount of RD$21,424.0 million, which began on February 1 of the current year.

Of the total resources disbursed, RD$1,149.3 million have been allocated to the acquisition of low-cost housing, benefiting 458 families, for an average disbursed value of RD$2.5 million per home. the remaining sumamounting to RD$240.0 million, corresponds to eight interim loans for the construction of low-cost housing, for an average value of RD$30.0 million.

Of the amount of resources disbursed, amounting to RD$1,389.2 million, a total of RD$733.2 million has been placed by multiple banks, RD$649.2 million by savings and loan associations, and the remaining RD$6.8 million by savings and credit banks .

It specifies that the legal reserve resources released for low-cost housing loans are funds that are the exclusive property of financial intermediation entities, based on the volume of liabilities subject to legal reserve of each one. These entities have the power to choose the beneficiaries of the loans they grant, according to the credit profile of each debtor, based on the conditions required by the Monetary Board and the Central Bank.

These conditions do not guide or determine, in any way, the flow of interim loans to particular categories of low-cost housing construction companies, financial intermediation entities being able to grant financing to any construction company, regardless of their size.

Read Also:  JD Sports is buying sports brand Hibbett for $1.1 billion

Recent Articles

Related News

Leave A Reply

Please enter your comment!
Please enter your name here