Commercial loans with higher interest rates

2023-05-30 06:03:50

Las interest rates of the business loans presented the highest level of growth by destination sector in the course of a year, going from 9.30% in April 2022 to 14.65 % last April, for an increase of 5.35 percentage points.

However, at the rate level the most expensive on the market is still the one of the consumer loanswhich went from 16.63% in April last year to 19.99 % in April 2023.

This represents an increase of 3.36 percentage pointsaccording to the most recent Macroeconomic Situation Report of the Ministry of Economy, Planning and Development (MEPyD).

Los mortgage loans were those of lower rate when comparing these three products, since it was located in 12.17 % last month, 1.95 percentage points above how it was in that same period in 2022, when it was 10.22%.

business loans

Despite the rise in interest rates in general and the economic slowdown throughout the year, the private banks made more loans intended both for consumption and for the various productive sectors. In this sense, the portfolio of loans private currency in national currency grew 16.2 % during the analyzed period.

He trade was the sector that had a highest absolute growth ratecon loans that totaled the 43,748.6 million of pesos. This is 24,715 million pesos more than that granted to microenterprises (19,032.8 million pesos) and 35,139.2 million pesos more than the 8,609.4 million pesos granted for real estate services.

However, in regards to amounts borrowedhe trade is he third sector that has received the most financing from private banks. The consumer loans were the most supported sector in April, with 89,742.5 million of pesos, followed by mortgagecon 44,103.4 million of pesos.

It may interest you

average rates

15.75 %

average lending rate

The average lending interest rate at the end of April was one 15.75 %an improvement of 5.12 percentage points.

According to the analysis of the MEPyDthe rise in rates is the effect of the tight monetary policy implemented by the Banco Central Dominicano (BCRD) to mitigate inflation which, as a result, has raised the percentage of interest for which banks lend to their consumers.

Indeed, the active interest rate average (what the bank charges customers) at the end of April was 15.75 %for a year-on-year increase of 5.12 percentage points, and which, according to this institution, caused the rate to position itself “above the historical series since 2013.”

In contrast, the passive interest rate (what the bank pays for investments) was located in 10.04 %for a reduction of 0.06 percentage points in relation to the previous month.

The report of MEPyD points out that the highest level of passive rates has made it possible to maintain “a favorable differential” in foreign currency, which has made easier the capital flows towards the country and motivates them to have more savings in national currency.

This increased by 12 tenths the net interest incomesituating it at 5.71%.

May goes with decreases

The month of May shows a downward behavior. BCRD data up to May 25 show that the trade rate was at 11.26%, 0.98 percentage points (pp) less than in April. The consumption rate fell 0.95 pp and stood at 12.58, while the mortgage rate was the lowest, standing at 9.15%, 171 pp less.

Journalist. She graduated from the Autonomous University of Santo Domingo (UASD), she with an additional semester in Written Communication studied at Maryville College, United States. She has written about the economy for the newspapers El Jaya and el Dinero. She is passionate about finance, culture, literature and well-being.