Moratorium for Micro-Financing Debts

The so-called "Moratorium Law", passed yesterday in Nicaragua, could have a strong negative effect on the availability of credit for the productive sector.

Thursday, February 25, 2010

One of the criticisms of the new regulation is that it sets interest rates by law. Opponents argue that the cost of money changes with the variations of the international financial markets.

José Adán Aguerri, President of the Private Enterprise Council, stated that the passing of the law carries dire consequences for the country's production, as it risks the capacity of micro-financing institutions to offer loans.

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More on this topic

Assembly Passes Microcredit Law

June 2011

The Nicaraguan Assembly has passed a law on the promotion and regulation of microcredit.

According to Gutierrez Wálmaro of the association of microfinance institutions (ASOMIF) the effect of the new regulations will result in a reduction of interest rates charged by microfinancers over the next three years.

Alba Caruna Exempt From New Microfinance Act

June 2011

The Alba Caruna cooperative may continue to operate as second-tier bank with microfinancers beyond regulation of the new law.

The exclusion was requested after taking into account that the cooperative not only provides loans to its members but also to third parties.

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Nicaragua: Consensus Achieved on Law for Microcredit

June 2011

In the coming weeks, the bill which has been approved by the public and private sector will be sent to the Assembly.

The committee has already been formed (five members, two from the private sector and three from the public) which will be responsible for overseeing the microfinance sector, as stated in the bill.

Nicaraguan Financing Companies Oppose “Moratory Law”

April 2010

Asomif will submit a plea for unconstitutionality at the Supreme Court of Justice.

René Romero, president of Asomif, the Nicaraguan Association of Microfinance Institutions, assured that despite presenting this plea, they will observe the new law known as “Moratory Law”, which sets conditions for negotiating debt covenants between debtors and microfinance institutions.

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