Reserve Bank transfers RD$3.6 billion earnings to government

SANTIAGO. The Administrator of the Reserve Bank (Banco de Reservas de la Republica Dominicana), Vicente Bengoa Albizu, revealed yesterday that the Board of Directors of the entity approved the transfer to the central government of RD$3.178 billion of its earnings. This order was executed last Friday, 14 June, by means of a transfer to the National Treasury.

He said that added to this sum are RD$450 million for a total of RD$3.628 billion, because this year they have transferred 1.4 billion square meters (m2) for the construction of 35,000 low cost housing units in the project "Juan Bosch City."

Bengoa reported that this month the Reserve Bank (BanReservas) has passed the RD$300 billion mark in assets and became the first financial institution of the country that reached that number. He report that in the five years from 2007 to 2012, BanReservas has transferred earnings of RD$10.3 billion to the Central Government and in income taxes and the 1% on productive assets it has paid another RD$4.473 billion for a total of RD$14.773 billion.

He said that this year during the first five months, the net earnings reached RD$1.261 billion, while during the same period last year the results were RD$684 million.

He indicated that the earnings grew by 84%, which if we project those results, "we can conclude that 2013 will be in terms of earnings very superior to 2012, in spite of the fact that this year we paid RD$497.6 million of the 1% on productive assets."

The bank no only is an important source of resources for the government because of the yearly contributions of its earnings and its taxes, but also the fact that it has become a sort of "financial arm" of the government sector.

BanReservas is contributing to getting the highway of Ocoa/Ocoa Crossroads; San Pedro de Macoris-La Romana and the San Pedro Beltway finished by November of this year.