Construction sector favors the release of RD$21,424 million for construction

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Sector construcción favorece liberación de RD$21,424 millones para la construcción

The Dominican construction sector favored this Wednesday the release of RD$21,424.4 million from the legal reserve for the channeling of loans for the construction and acquisition of low-cost housing.

The president of the Dominican Association of Home Builders and Developers (Acoprovi), Jorge Montalvo, congratulated the measure taken by the Central Bank and the Monetary Board to release those resources, by explaining that Dominicans will be closer to fulfilling the dream of having their own roof.

Montalvo highlighted that the released amount will be used by multiple banks and savings and loan associations from interim loan financing for housing construction, which will contribute to job creation and the movement of commercial activities in the different sectors, which will expedite this pillar of the Dominican economy.

“We reiterate our commitment to the country and to our authorities to continue boosting the housing sector and we applaud this new measure for the benefit of all families who dream of their own roof,” emphasized the head of Acoprovi.

Likewise, the president of the Dominican Confederation of Micro, Small and Medium Construction Companies Inc (Copymecon) congratulated through its president, Eliseo Cristopher, the announcement of the Central Bank (BCRD), on the adopted measure.

Cristopher recalled that this institution, which represents construction SMEs, advocated participation to reach soft loan facilities through financial institutions, to launch the development of their projects, but the financial bureaucracy did not allow such opportunities. .

He commented that they made projections of the behavior of economic variables, growth and participation in GDP; as well as the level of financing received for the sector, where they pointed out the lack of support from financial institutions, since the requirements for MiPymes were the same as for large companies, which limited the opportunities to execute trusts in folders.

Contributions of Mipymes stand out

The senior representative of the construction MiPymes sector stressed that in 2021 they had pondered that, despite the inflation in the sector, it closed in second place as the one that grew the most.

He indicated that the latter was possible by rescuing the workforce lost as a result of the pandemic that was affecting the country, as well as by incentivizing its growth above a 24%, chen the country’s average growth rate was one 12%demonstrating that the construction sector was resilient and recovered.

In addition, he said that the favorable external conditions for this sector translated into an increase in the dynamism of economic activity, which after a slight contraction in the first quarter of 2021, reached its peak of 16.1% in the second quarter of the year, being the pillar of economic growth and standing, except in the most acute periods of the pandemic, above the average growth of the economy.

What he assured has demonstrated the potential of small and medium-sized construction companies to meet the financial commitments acquired, creating jobs and returning capital and interest in record times to the financial entities that have placed their trust in them. Hoping for more support this year to achieve the goal of reducing the housing deficit.

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