Nicaragua: Credits Fall 21%

Between December 2017 and March of this year, the number of active credits in the country fell 21%, mainly because of the fall in commercial loans and cards.

Tuesday, July 16, 2019

Data from the Superintendency of Banks and Other Financial Institutions (Siboif), specify that between December 2017 and March this year the number of loans fell by almost 400 thousand, going from 1.79 million to 1.41 million.

In terms of the amount of loans, the fall was 13%, falling from $4.977 million to $4.340 million for the months concerned. This behavior is because the country has been in a crisis for more than a year, which has led to a drop in production and a rise in unemployment.

See "One Year in Crisis

Sergio Santamaría explained to that "... Here the credit cards were sent to you until your job, you could have two or three cards, now people have no ability to pay and as the restructuring ended in December (a rule that allowed a moratorium), now the card market has to decrease, there is no ability in people to demand credit."

The article adds that "... This represents a shock for the banks, considering that their main business in terms of loan approval is via credit cards. According to Siboif figures, of the total active loans up to March of this year, 68.2 percent are credit cards."

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