In Nicaragua during 2020, a year marked by the pandemic generated by the covid-19 outbreak, the outlays for life insurance claims increased and for automobiles decreased.
Figures from the Superintendence of Banks and Other Financial Institutions (Siboif), detail that between January and November 2019 and the same period in 2020, the amount disbursed by insurance companies for life insurance coverage increased by 78%, from $10.7 million to $19 million.
From January to June 2020 in Nicaragua, the amount paid by insurers for life insurance increased by 54% compared to the same period in 2019, a rise that could be explained by the health crisis generated by the spread of covid-19.
Although the Nicaraguan government had only 116 deaths from covid-19 as of July 28, the numbers of insurance companies competing in the local market reflect another reality.
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.
Local authorities decided to raise by 10% the minimum capital required for the opening of a bank or the operation of existing ones.
The Superintendence of Banks and Other Financial Institutions (Siboif) announced that the minimum capital required for banks that already operate or wish to enter was raised by $1.03 million, from $10.67 million to $11.70 million.
Last year in Nicaragua, insurance sales totaled $199 million, 4% less than in 2018, a drop that can be explained in part by the drop in life, health and accident policies.
Data from the Superintendence of Banks and Other Financial Institutions (Siboif) detail that between 2018 and 2019 premium sales fell by $9 million, from $208 million to $199 million.
Arguing that the country's situation is complex and that the need for greater liquidity to meet its immediate responsibilities has had consequences on its funding sources, Factoring S.A. announced its exit from the local stock market.
Managers of the financial institution reported that the company began operations in 1998 and in 2011 was authorized by the Superintendence of Banks and Other Financial Institutions (Siboif), to make issues in the stock market.
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.
Since April 2018 the total deposits of the National Banking System have been decreasing every month, but in August and September the trend seems to have reversed, as in both months there were increases.
According to data from the Superintendence of Banks and Other Financial Institutions (Siboif), between July and August a $39 million growth in bank deposits was reported.
The Superintendence of Banks granted permission for Banco Atlántida, an entity of Honduran origin, to begin operating throughout the country under local supervision and regulation.
The constitution of Banco Atlántida in Nicaragua was authorized on October 24, 2017, but it was not until October 2, 2019 that the permit to operate in the financial system was published in La Gaceta.
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.
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 Nicaragua, the license of CrediFactor S.A. to offer securities to the public was revoked due to the difficulties the company is facing in paying for the securities.
The executive president of CrediFactor, Mauricio Pierson Stadthagen explained to Elnuevodiario.com.ni that "... The country's situation decelerated the rate of recovery of the portfolio they had been recording, which was funded with the issuance of bonds in which individuals invested. The factoring company did not take deposits from the public."
Life, health, and accident policies accounted for most of the 12% growth recorded in premiums during the first quarter of the year compared to the same period in 2016.
Total premiums recorded in the first quarter of the year, according to figures provided by Victor Urcuyo, head of the Superintendency of Banks and Other Financial Institutions, amounted to $57 million, almost 13% more than in the same period last year.
Between 2010 and September 2016 the gross balance of loans granted through credit cards grew by more than 100%, going from $145 million to $340 million.
Figures from the Superintendency of Banks and Other Financial Institutions (SIBOIF) show that the number of loans granted through credit cards rose from 541,000 in 2009 to more than 1 million to September this year.
According to the nicaraguan regulator, the increasing amount of regulation and anti-money laundering controls that the US banks are subject to, has led some of them to remove their correspondent agencies from the country.
The president of the Association of Private Banks in Nicaragua (Asobanp), Juan Carlos Arguello, said in an article on Laprensa.com.ni that "...
The transaction involves the acquisition of all of Citi's operations in the country, including commercial loans, personal loans, deposits and credit cards.
From a statement issued by Ficohsa Group:
The company has been consolidated among the 10 largest financial groups in Central America
* The transaction involves the acquisition of all of Citi's operations in Nicaragua: commercial loans, personal loans, deposits and credit cards.
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