According to the Dominican Republic Central Bank, credit to the private sector increased 8.8% in 2020, which adds that these loans exceeded 17 million dollars.

Most of these resources have been granted in a balanced proportion to the corporate sector and households, highlighted Osvaldo Lagares, economic consultant for the Central Bank’s Financial Stability and Regulation Department.

The specialist adds that the growth in private loans is due to the implementation of monetary and financial policies taken during the pandemic.

Lagares highlights that 50% of the total loans of the Dominican economy, amounting to about 30% of the GDP, is destined to companies.

Loans to households have been used during the pandemic to finance the purchase of household items, purchase and repair of homes, educational payments, and health services.

Lagares specified that the resources granted with the Central Bank’s liquidity facilities have benefited around 75,000 households and companies, which have obtained new loans and refinancing under more favorable conditions in terms of terms and interest rates, which have allowed them to keep up to date with the payments of their financial commitments, as well as financing the restart of economic activities.

The official argued in a Central Bank document that during 2021 total credit to the private sector would maintain balanced growth in all productive sectors.

Lagares said that although the payment capacity of households and companies has suffered from the COVID-19 pandemic, the outlook is that this year the Dominican economy would return to its growth path of between 5% and 6%.