The Central Bank of the Dominican Republic (BCRD) clarified that the decision to increase its Monetary Policy Rate (MPR) from 3.00% to 3.50% does not apply to liquidity facilities granted by said institution for an amount of up to RD $ 215,814.3 million for financial intermediation entities to channel loans to the productive sectors, households and micro, small and medium enterprises (Mipyme).
Through a statement, the agency specified that the resources granted by the BCRD to financial intermediation entities through the Rapid Liquidity Facility (FLR) are maintained at an invariable interest rate until maturity of 3.0% per annum, guaranteed with securities issued by the Ministry of Finance, the Central Bank, private companies and by low-risk loan portfolio.
Add that the facilities granted through the Repo Financing Window are maintained at 3.5% per annum, guaranteed with securities issued by the Ministry of Finance and by the Central Bank, which is why the rates of loans channeled by said entities to the productive sectors must be maintained up to 8% per year, unchanged until maturity; and for households and MSMEs at the competitive rates originally agreed between the entities and the debtors, in accordance with the inherent costs of these market segments.
The same way The interest rates of the loans granted to the aforementioned sectors with resources released from legal reserve must be kept fixed until their maturity. In other words, the terms and conditions of the loans channeled by financial intermediation entities cannot be modified with resources obtained in the different liquidity windows of the Central Bank.
It indicates that, equally, the aforementioned interest rates will remain unchanged for the renewal of credit lines maintained by the BCRD after the beginning of the gradual and orderly return of the liquidity granted through the different facilities, so that the productive sectors, households and MSMEs can have these resources at low cost, such as capital of work necessary to continue their productive activities normally.
“The Central Bank of the Dominican Republic reaffirms its commitment to macroeconomic stability and the proper functioning of the financial and payment systems, remaining vigilant to adopt in a timely manner the measures that are necessary for such purposes,” the note concludes.