IDB will allocate US$100 million to expand financing for MSMEs through BANDEX

Santo Domingo. The Governor of the Central Bank of the Dominican Republic (BCRD), Héctor Valdez Albizu, received a technical mission from the Inter-American Development Bank (IDB) to advance initiatives that strengthen access to financing for micro, small, and medium-sized enterprises (MSMEs), through the Development and Export Bank (BANDEX).

The mission, led by Diego Herrera, lead financial markets specialist at the IDB, presented the progress of the “FinaRD: 2036: Accelerating Investments in the Dominican Republic” program, aimed at boosting development banking through first- and second-tier financing schemes and the creation of partial guarantee funds.

During the meeting, it was reported that the multilateral organization plans to allocate US$100 million to facilitate access to credit for the productive activities of MSMEs, with an emphasis on micro and small enterprises that meet the eligibility criteria.

The program will also prioritize companies with an export orientation and those led by women, with the purpose of expanding financial inclusion and strengthening female entrepreneurship in the country.

As part of the initiative, the creation of a partial guarantee fund is planned, which will start with a base capital of US$5 million, which will allow for the backing of loans granted by financial intermediation entities to projects considered eligible.

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Diego Herrera highlighted that the program’s design is aligned with the policies promoted by the Central Bank to strengthen a development banking system focused on supporting the productive and export sectors of the Dominican economy.

For his part, Governor Héctor Valdez Albizu stated that this project is part of the 2022-2030 National Financial Inclusion Strategy and the Central Bank’s 2026-2029 Institutional Strategic Plan, which are aimed at expanding productive financing and promoting greater financial inclusion.

Likewise, he announced that the Central Bank will evaluate the regulatory modifications that will be presented to the Monetary Board to facilitate the implementation of these initiatives.

The meeting was also attended by the Vice Governor of the BCRD, Clarissa de la Rocha de Torres; the Manager Ervin Novas Bello; several deputy managers from the monetary, financial, and international areas, as well as directors and representatives of the IDB in the Dominican Republic.