Nicaragua: Banking Agencies Keep Closing

Since the beginning of the political crisis in the country, several banks have decided to close some of their service centers, and only during the first half of 2019 have 56 branches been reported closed.

Friday, August 23, 2019

In April 2018, the country plunged into a political crisis that has dragged the economy into recession. As a result of this problem, official figures indicate that 49 bank branches were closed last year and 56 more were closed between January and June 2019.

Of the total number of branches and bank windows that have been closed, which now total 105, 48 were located in Managua and 57 in other departments. This has resulted in the dismissal of 2,397 employees.

Róger Arteaga, a specialist in the field, told Laprensa.com.ni that "... In all countries the financial system has a high correlation with the economic development of the country, in the case of Nicaragua is no different, what we see is a consequence of the same economic recession, that makes there are very few operations, commercial transactions between buyers and sellers, then operations decrease.

See "Nicaragua: Bank Credit Falls by 20%

Regarding the situation of the financial sector, Juan Sebastián Chamorro, executive director of the Civic Alliance, explained that "... The issuance of credit has collapsed, especially this year, still last year we have to remember that we had January, February, March, and the first weeks of April, that we work normally and at a good economic pace, so that (lack of credit) makes the activities of branches are down and that could explain the closure."

The Central Bank of Nicaragua reported that as of June 2019 the gross portfolio of the financial system totaled $4.047 million, 20% less than in the same month of 2018, explained in part by the performance of commercial and personal credit.



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