In her article in Laprensa.com.ni, Gisella Channels Ewest notes that "In the two decades of its existence the microfinance sector in Nicaragua it has never faced a crisis as profound as that caused by the movement of producers and traders from the North. '

"After several years in which microfinance institutions achieved annual growth rates of up to 30 percent, in the 2008-2011 period, the movement -allegedly made up of about 12 thousand debtors - lowered the portfolio of loans and customers by more than 30 percent. Microfinancers in Nicaragua stopped being leaders in the region, reduced their network of branches, and lost the confidence of their providers and saw their costs rise, but they also learned to be more selective when granting loans. "

Source: laprensa.com.ni

More on this topic

Nicaragua: Microfinancers Leave NO PAGO Movement Behind

January 2013

In 2012 the sector achieved a growth of 5.3%, after three years of consecutive declines, due to an improvement in the business climate.

The entities comprising the Nicaraguan Association of Microfinance Institutions (Asomif) reported last year, in 2012, a portfolio $163.24 million, and a total of 243,066 customers, about 13,030 more than in the year 2011.

Lack of Capital in Microfinancers

April 2012

In Nicaragua, the ‘No Pago’ (Non Payment) movement has generated such distrust in international sources of finance that this year credit lines -which were $80 million-, have barely reached $5 million.

MFIs received less than $5 million in the first quarter of 2012 from international lending institutions, which directly affects their ability to offer more microloans, said Alfredo Alaniz, executive director of the Association of Microfinance Institutions (ASOMIF).

Better Environment for Microfinance in Nicaragua

March 2012

After the storm, the prospect of fresh funds from abroad has improved the business environment for microfinance.

"Between seven and ten million dollars could return to the portfolio’s belonging to Nicaraguan microfinance institutions this year, a product of the emerging recovery in the confidence levels of international creditors", writes Gisella Canales on Laprensa.com.ni.

Nicaragua's Country Risk Affects Micro-financing

August 2010

The "No Payment" movement is scaring US and European investors, threatening the arrival of $70 million worth of funds for micro finance companies.

"In the last Central American Microfinance Conference the challenges and opportunities faced by the sector were discussed and the Guatemalan moderator, Reynold Walter, concluded by highlighting that governments should discourage 'no payment' movements, which received a round of applause from the attendees.