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.
Figures from the Nicaraguan Association of Microfinance Institutions (Asomif) show that at the beginning of this year there were 26 organizations dedicated to granting microcredits, while at the end of September there were 28 companies registered.
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.
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.
So far this year microfinancers have provided loans totaling $197 million, above the $184 million lent at the end of 2013.
Microfinance companies expect to close 2014 with a loan portfolio of approximately $206 million, representing an increase of 11.5% and 4% increase in the number of clients served, compared to last year.
Microfinance officials have announced that $55 million will be granted in loans to businesses in the agricultural sector.
Representatives from the Nicaraguan Association of Microfinance Institutions said they hope to focus resources on the areas that have been most affected by the El Niño climate phenomenon.
Julio Flores, General Manager of the Local Development Fund, told Elnuevodiario.com.ni that "...
The agricultural sector is demanding a law that grants tax benefits and allows the use of leasing of machinery and equipment to improve competitiveness.
Instead of buying equipment and financing it with a bank, the agriculture sector is calling for a law to be approved to regulate and encourage the use of leasing, as a way to improve productivity by renting equipment and not borrowing to acquire it.
In Nicaragua two microfinancers will provide short-term loans for progressive housing construction.
The Microfinance companies which up until now have focused on short-term loans to individuals and microenterprises outside of the banking system, will begin to break into the housing market, offering loans for home improvement and construction.
Elnuevodiario.com.ni reports that "...The Nicaraguan Association of Microfinance Institutions, Asomif; the Central American and Caribbean Network for Microfinance, Redcamif, and the organization ADA from Luxembourg selected on Friday two microfinancers in the country that will provide housing loans. "