64 years after its founding, Pedernales, in the south of the Dominican Republic, is waiting to shine and achieve the social and economic dynamism it aspires to. The authorities of this Government have put the magnifying glass towards this province and the southern region with an ambitious tourism development plan.
However, this outstanding debt keeps more than 70% of its residents submerged in low socioeconomic levels, in addition to lacking multiple basic services, including little financial access.
According to the latest cut by the Superintendency of Banks, as of December last year, in Pedernales (with 35,557 inhabitants) there were only two ATMs and the same number in Independencia, two border destinations with fewer cash dispensers and other transactions. When analyzing recent data on the amount and value of credit granted to these demarcations so far this year, the reality is shocking.
In April 2023, the credit portfolio by province places Pedernales as the province with the least amount of credit granted with 5,922, worth RD$622 million, equivalent to 0.1% and 3.7%, respectively, of the total given by the system. Dominican financial system, which reached 5,745,946 loans, for an amount of RD$1 billion 678,664 million.
This is followed by Elías Piña (with 63,196 residents and seven ATMs) and Independencia (59,472 locals), also in the south of the country, with 12,214 loans (RD$1,206 million) and 13,542 (RD$1,498 million), respectively. Among these two provinces, Independencia is the most dynamic economically, while Elías Piña, along with Pedernales, are the poorest areas of the country.
However, the development plan in Cabo Rojo could revolutionize the economy of its locals with higher quality jobs and more competitive salaries, therefore, its residents could have greater access to credit at a more competitive average rate to the market.
Interest rate by region
According to the Banking Map of the Dominican Republic, prepared by the Superintendency of Banks, as of December 2021, Hato Mayor and Monte Plata in the Eastern region, as well as Elías Piña, Pedernales, Independencia and Bahoruco, in the South, ranked as the provinces in which the financial system offered the highest average interest rates. These ranged from 20.1% average to 18.7%.
To date, the average interest rate in the South region is 18.0%, while the North is at 16.5%; the East with 14.5% and the Metropolis, with the largest number of ATMs, financing and bank branches, has an average rate of 14.1%.
In the National District, the average rate for amounts financed in pesos was 11.6% as of December 2021, the lowest in the Dominican Republic, according to the latest available data.
2023-06-13 12:48:32
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