Crisis in Nicaragua: Textile Companies Closing

The complicated situation happening in the country since mid-April has forced nearly 70% of SMEs in the textile and clothing industry to suspend their operations.

Wednesday, July 4, 2018

According to information from the Chamber of Industries of Nicaragua (Cadin), 30% of small and medium size textile and clothing companies that are producing are doing so at 25% of their capacity. The situation in the sector has led to the temporary suspension of eight out of ten workers. 

See "Crisis in Nicaragua: Economic projections get worse"

Regarding the situation they are currently facing, Omar Baldizón, owner of the Baldizón shoe shop in Masaya, explained to Elnuevodiario.com.gt that he closed his operations " ..." in June and we are three days into July. The staff is on vacation, and we are frantically searching, to get (money) and pay them. There are some (workshops) that are working three or four days, and they not even able to work a full work day.'"

See also "The cost of the crisis for Central America"

For his part Fernando Rocha, owner of a footwear workshop in Granada, said they are " ... in a situation that has forced us to stop (our operations). The thing is, there is no possibility of selling our products to anyone, or producing anything. We are totally paralyzed."

According to Cadin's figures, 80% of SMEs in the wood-furniture sector are paralyzed, and the remaining 20% are working at 5% of their productive capacity.  

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