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 Laprensa.com.ni 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."

Do you need information about the financial sector?

Request more information:








this site is protected by reCAPTCHA and Google's privacy policy and terms of service.
Need assistance? Contact us
(506) 4001-6423


More on this topic

Credits in Nicaragua: Crisis on the Rise

May 2020

Given the political and economic crisis affecting the country since April 2018, a scenario that has combined with the crisis of covid-19, the loan portfolio increased from $5,172 million in March 2018 to $3,404 million at the end of April 2020.

According to figures of the Superintendence of Banks and Other Financial Institutions (Siboif), in the first four months of the year a decrease in the credit portfolio is also reflected, since it went from $3.578 million reported at the closing of 2019 to $3.404 million recorded in April 2020, representing -5% variation for the four-month period in question.

Banking Business in Red Numbers

November 2019

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.

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.

Insurance: Profitability Falls

April 2019

During the first quarter of the year in Nicaragua, premium income was down 6% from the same period in 2018, while claims payments increased 14%.

Figures from the Superintendence of Banks and Other Financial Institutions (Siboif) indicate that between January and March 2018, and the same period in 2019, premiums in the country fell from $55 million to $53 million.

Crisis is Reflected in the Financial Sector

March 2019

Since the political and economic crisis began in Nicaragua, credit placement has fallen, while delinquency and loan restructuring have increased.

Data from the Superintendence of Banks and Other Financial Institutions (Siboif) indicate that between April 2018 and February 2019, a period during which the political crisis in the country has deepened, the fall in the net credit portfolio was 16%.

 close (x)

Receive more news about Banking

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


Professional ink refill franchise for sale

Ink and toner refills with latest generation machinery exclusively for the franchisee in Central America, investment opportunity with fast return.
Ink and toner refills with latest generation machinery...

Stock Indexes

(Apr 6)
Dow Jones
-5.60%
S&P 500
-5.10%
Nasdaq
-5.64%

Commodities

(Oct 23)
Brent Crude Oil
41.99
Coffee "C"
108.05
Gold
1,901
Silver
24.69