Nicaragua: Recovery in Microfinance

Nearly three years after the crisis caused by the No Pago movement, the sector is growing at an annual rate of 12%, driven by traditional credit, micro-insurance, and health services.

Thursday, June 25, 2015

The microfinance sector is beginning its gradual and cautious return to agriculture, the sector most affected by the No Payment Movement, and is taking risks in projects by small agritourism farms.

Currently it has a portfolio of $210 million with 250,000 customers, which allowed it to grow 11% last year .

Veronica Herrera, coordinator of the Commission's image of the Nicaraguan Association of Microfinance Institutions (Asomif), reported to Elnuevodiario.com.ni that "... the issue of social housing is a new product that we have been working on ...".

She also explained that "... in the case of 'Mi Crédito', we have signed a partnership with Habitat for Humanity, to finance improvements and extensions to homes, with an investment of up to $3,500, with technical assistance through Habitat ...".



More on this topic

Microfinance in Nicaragua: A $492 million Business

November 2017

Up to the third quarter of this year, microfinance institutions had granted $492 million in loans, 15% more than in the same period in 2016.

The microfinance sector has been growing steadily in recent years, after having experienced a crisis between 2008 and 2011 caused by 'NO PAGO' (NO PAYMENT) movement.

Nicaragua: Microfinancers Leave NO PAGO Movement Behind

January 2013

In 2012 the sector achieved a growth of 5.3%, after three years of consecutive declines, due to an improvement in the business climate.

The entities comprising the Nicaraguan Association of Microfinance Institutions (Asomif) reported last year, in 2012, a portfolio $163.24 million, and a total of 243,066 customers, about 13,030 more than in the year 2011.

Better Environment for Microfinance in Nicaragua

March 2012

After the storm, the prospect of fresh funds from abroad has improved the business environment for microfinance.

"Between seven and ten million dollars could return to the portfolio’s belonging to Nicaraguan microfinance institutions this year, a product of the emerging recovery in the confidence levels of international creditors", writes Gisella Canales on Laprensa.com.ni.

Nicaragua: Smaller Loans Under Microfinance Act

May 2011

On approval of the act currently under discussion in Congress, microfinancers will not be able to make loans of more than $10,000.

The new law also requires microfinancers to consult credit bureaus for the customer's credit history before granting a loan.

According to Rene Romero, president of the Nicaraguan Association of Microfinance Institutions, ASOMIF, "...