Dominican Republic - Banking SystemsD.R. - Banking Sysems
The Central Bank of the Dominican Republic implements monetary policy and issues the national currency (Dominican pesos, commonly abbreviated as “RD$”). The Central Bank also manages external payments.
Commercial banks represent one of the principal sources for private sector financing. Most requested loans are short and medium term, ranging from 30 to 90 days for working capital or trade financing and from 1, 3 to 5 years at the most for capital expenses. Working capital fixed-term loans require that the borrower make either periodic payments of principal and interest or a single principal balloon payment of the entire outstanding balance at maturity. These loans are reviewed on a case-by-case basis. Financing for construction or tourism projects may have longer terms typically from 7 to 10 years or more in a few cases.
Indicative current interest rates for loans in local currency are as follows:
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
Commercial banks represent one of the principal sources for private sector financing. Most requested loans are short and medium term, ranging from 30 to 90 days for working capital or trade financing and from 1, 3 to 5 years at the most for capital expenses. Working capital fixed-term loans require that the borrower make either periodic payments of principal and interest or a single principal balloon payment of the entire outstanding balance at maturity. These loans are reviewed on a case-by-case basis. Financing for construction or tourism projects may have longer terms typically from 7 to 10 years or more in a few cases.
Indicative current interest rates for loans in local currency are as follows:
- In RD$ the preferential rates range between 9 and 18 percent.
- Non-preferential rates can go as high as 23-25 percent for loans denominated in RD$.
- Interest rates for the commercial/corporate sector are revised usually every 6 or 12 months.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.