Banking Business in Red Numbers

Between March 2018 and September 2019, the number of loans granted in Nicaragua by the banking sector has been reduced by around 540,000, a drop attributed to the economic crisis the country is going through.

Tuesday, November 26, 2019

Data from the Superintendence of Banks and Other Financial Institutions (Siboif), say that in March last year, the month before the onset of the crisis, 1.8 million loans were reported, and in September 2019 the figure fell to 1.26 million.

See "One year in crisis"

Roger Arteaga, an economist, explained to that "... it will be very difficult for credit to recover to the levels it had before the crisis started, because it is a business of trust, which has come to the detriment of the episodes of violence generated by the regime of Daniel Ortega and Rosario Murillo."

Arteaga added that "... It is difficult to recover to the previous levels, even companies are leaving the country and without credit cannot operate companies, without operation of companies there is no production, increases unemployment and that deepens the recession. In addition, the government introduced a tax reform and Social Security reform."

Also see "Investment in Nicaragua: Is it Possible to Restore Confidence?"

The portfolios that have been reduced the most are those of the industrial sector, vehicles, personal consumption, livestock and commercial.

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