Santo Domingo, RD.- The credit portfolio of multiple banks to the construction sector increased by RD$30,118 million, equivalent to 44%, going from RD$67,759 million in 2022 to RD$97,877 million at the end of 2023, reported the Association of Multiple Banks of the Dominican Republic (aba).
The ABA highlighted that this increase was driven by the own funds of the multiple banks and the legal reserve resources released by the monetary authorities to boost the construction sector. He specified that the amount of this growth was channeled through 2,059 new loans, out of a total of 18,481 credits in force at the end of 2023.
He highlighted that, on the supply side, commercial banking represents 82.8% of the funds provided for financing construction, according to data from the Superintendency of Banks.
He indicated that this type of financing, also called interim, is granted to construction companies for the purpose of acquiring materials, paying for labor and covering other expenses related to the building or project. He explained that it has the peculiarity that they are disbursed gradually through cubations, that is, as the execution of the work progresses.
The banking union highlighted that this process allows maintaining the supply of new properties for the public, which can be for housing, commercial or other uses.
Financing for the acquisition of homes increased by RD$35,944 million
The Association of Banks indicated that the mortgage loan portfolio increased by RD$35,944 million, which means 19% in relative terms, going from RD$190,596 million in 2022 to RD$226,541 million at the end of 2023.
The additional amount was channeled through 9,347 new loans, which means that the same number of homes were acquired. He highlighted that operations doubled compared to 2022, a period in which loans for the acquisition of new homes reached approximately 4,500, according to a report from the Technical Directorate of the ABA.
The union detailed that the mortgage loans were distributed in: acquisition of the debtor's home RD$188,153 million (83%); purchase of low-cost housing from a trust of RD$24,999 million (11%); acquisition of a second home or summer vacation RD$10,341 million (4.5%) and in remodeling and construction of homes RD$3,048 million (1.5%).
In a press document, he highlighted that currently the banking sector is the main provider of these resources, if it is considered that the funds allocated for home acquisition represent 65.8% of the total mortgage portfolio of the financial system.
In that order, the ABA reiterated the commitment of commercial banks to continue contributing to the construction, acquisition and remodeling of clients' homes, through financing and initiatives such as the Happy Housing program, due to its impact on reducing the housing deficit. , in the quality of life of citizens and due to the multiplier effect of this economic activity in other productive sectors.