Financial crisis starting to affect Nicaraguan Banking

The effects are already visible, there is a strong reduction in the credit for housing and vehicles, as well as a restriction of credit cards.

Wednesday, December 17, 2008

This was confirmed by representatives of the sector, after participating in presentation of the fourth report on the economic situation by the Nicaraguan Foundation for Economic and Social Development, Funides.

Arturo Arana, executive president of the Production Bank, Banpro, said that they are not restricting credit, however they are being more selective regarding which sectors they can finance.

More on this topic

Banks Adjust to Costa Rica Credit Crunch

February 2013

The ceiling on the growth of the loan portfolios imposed on Costa Rican banks has forced financial institutions to adjust their lending strategies.

Elfinancierocr.com reports that "The Central Bank of Costa Rica (BCCR by its initials in Spanish) established a ceiling of 9% on the growth that credit loans might have between February and October this year. In 12 months, the figure will rise to 12%. "

Credit Supply Stagnant in El Salvador

June 2011

Since the fourth quarter of 2008, credit extended by banks has been declining consistently.

An analysis published by the Salvadoran Foundation for Economic and Social Development reads:

“This decline has various interpretations, from suggestions that it is the result of reduced demand due to the lack of investment opportunities, to the internationalized banking system’s lack of identification with the needs of local businesses. Regarding the first scenario, this is a very limited conclusion and the second case offers an interpretation that doesn’t have an economic foundation.

Credit Card Market Stagnant in El Salvador

April 2010

Consumer budgets are still healing from the economic crisis, delaying a recovery in credit card lending.

Almost 60.000 credit cards were cancelled during 2008 and 2009, half of them for delinquency by their owners. Many others maxed out their credit and cannot use their cards anymore.

Warning about credit restriction in El Salvador

September 2008

The export and industrial sector in the country has indicated that market conditions have worsened.

"We are now feeling a reduction in credit access, with the consolidation of the banks there is now a restrictive policy, and the international financial crisis is causing more credit to be closed due to the demand for capital in other markets," Jorge Arriaza, executive director of the Salvadoran Industrial Associacion (ASI), manifested.

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