The newspaper Hoy reports a boom in 1996 in house building as a result of a decline in interest rates, the availability of longer term financing and an increase in availability of financing in general, all as a result of the general macroeconomic stability that has been maintained. The item highlights that for the first time in many years, there is now financing available over 30 years with interest at 18 percent.
New contracts stipulate a re-negotiation of the interest rate every two years.
The growth is taking place despite competition from Mexican clothing manufacturers. He mentioned that Cuba, the D.R., and Puerto Rico all stand to lose if they compete against each other. He suggested the sale of multi-destination tourist packages. Mr Gamundi, a Dominican businessman who moved to Puerto Rico 10 years ago, feels the country will be able to achieve adequate development if it bases its growth on the trilogy of government, private business and education. He also said that the Dominican Republic is achieving a high level of skills in its work force which will allow it to make products to the specifications of the individual consumer.