The Central Bank clarified that financial intermediation entities will be able to access the Quick Liquidity Facility, authorized by the Monetary Board, for an amount of up to RD $ 60,000 million for new loans, that is, financing that may be granted for working capital of companies, development of new productive activities, as well as to boost consumption and private investment.
In a press release, the Central Bank reported that for new loans, financial intermediation entities will be able to obtain liquidity for the total amount (100%) of each financing to be granted.
Another method for banks to have access to these resources is to be directed to debt refinancing, destined to loans granted by financial intermediation entities to debtors who were up-to-date in their payments as of February 29, 2020, which may have been late in their payments due to the COVID-19 pandemic, so that they can improve the conditions of their financing, in terms of interest rates, terms, and other facilities.
Financial intermediation entities may include all debtors that are up-to-date in their payments, such as those that after February 29, 2020, have been late in their payments due to the COVID-19 pandemic.
The debtor may refinance up to 100% of the amount owed. Additionally, the refinancing may include fresh resources for working capital, in agreement with your financial intermediation entity, in addition to the arrears and arrears applied after February 29, 2020.
The Dominican Central Bank highlighted that these loans will have a term of up to 3 years and a fixed interest rate of 3.0% per year, to channel financing to the productive sectors and households, under these two mentioned modalities.