Conference

Conference Highlights Benefits of the Trust as a Tool for Tourism Development
Santo Domingo,Dominican Republic 13 June 2013

As an initiative of the Destiny Tourism Cluster Puerto Plata, the Banco Popular Dominicano in Puerto Plata held a lecture entitled “The trust fund as a tool for tourism development”, given by Lic. Edward  Baldera, Vice President of the Bank for Institutional and International Investment.

In his presentation, the bank executive presented an overview of the benefits and facilities this new tool of the banking Grupo Popular offers to the tourism sector.

In his presentation, the bank executive presented an overview of the benefits and facilities this new tool of the banking Grupo Popular offers to the tourism sector.

He explained that the trust is a contractual act by which one or more persons (the trustors) transfer rights of ownership or other real or personal rights to a natural or legal person, called afiduciary. The estate is administered in strict accordance with the instructions of the trust and the beneficiaries(the trustees) receive the benefits granted or are returned on the date the act terminates, in accordance with the legal framework.

According to him, this facility arose in 2012in response to the needs for new secure financial solutions which are more flexible and innovative for businesses and families in the Dominican Republic.

“The goal of this product is to approve and developthe maximum growth opportunitiesof Law No.189-11about Development of the Mortgage Market and the Trust. Use of the trust as a vehicle for asset management provides greater certainty and clarity to parties involved in the project, “he said.

Tourism Trusts

The Tourism Trust is a fundamental tool for the development of this important economic activity. According to the Vice President of the Bank for Institutional and International Investment of Grupo Popular, this figure permits the joint participation of governments and private investors in high-impact projects, under secure conditions.

He noted that the trust is a transparent tool, accountable and effective for the development of tourist resorts. “It’s a viable option by which governments can carry out various activities, among them development of national tourism; and implement many business relationships that result in an improvement of the economy.

Among the general advantages highlighted are the following:  it allows for the controlof thetrust property in an efficient manner; provides certainty and security in meeting the purposes for which it was created; and sets defined management and investment criteria.  It is a flexible figure that responds to the needs of each individual client.  It is fiscally neutral and provides for impartiality and tax fairness because the Trust is placed in the hands of a third partycalledthe Trust Fiduciary who specializes in managingthe trust assets.

Other benefits that favor the tourism sectorin particular,is that it isolates transferred independent assets- not subject to seizure; provides transparency in the application of public resources;  records project expenses on an individual basis; utilizes the investment funds and delivers flexible accountability in accordance with work schedules.

In his concluding remarks Manuel Martín de Oliva, corporate Vice President of Tourism for the Popular, thanked theCluster for  the opportunity to be able to present in Puerto Plata the benefits available in using theTrust for tourism. He reiterated the interest that the bank has in wanting to develop products that support conditions conducive to achieving the goals for the growth of tourism in the Dominican Republic.

The event was held in the conference room of the Hotel Gran Ventana,  Playa Dorada, and was attended by representatives of the private business sector, institutional leaders, executives of Banco Popular, among others.