From 2009 up to 2011 the global financial crisis and the local crisis has negatively affected the microfinance sector, which has generated successive losses.
The president of the Nicaraguan Association of Microfinance Institutions (ASOMIF) and general manager of the Foundation for Rural Social and Economic Development (Fundeser), Rene Romero expects that the new legislation will bring "stability and institutionalisation" to the microfinance sector.
"But this legislation will not only contribute to improving governance and the image of the sector, but will directly affect the resources available to it. The law, in Article 28 requires the Banco de Fomento a la Producción (Produzcamos) to establish programs to channel microcredit resources into up to 50 percent of its total portfolio, which according to the Superintendency of Banks and Other Financial Institutions exceeded 988 million cordobas ($ 43 million) in October.
"We hope that as the sector gradually recovers, there will be greater national confidence, internationally, we expect the BCIE (Central American Bank for Economic Integration) starts to give disbursements or manage lines of financing to microfinancers" says Romero", reported Laprensa.com.ni.
Source: laprensa.com.ni
More on this topic
June 2011
The Alba Caruna cooperative may continue to operate as second-tier bank with microfinancers beyond regulation of the new law.
The exclusion was requested after taking into account that the cooperative not only provides loans to its members but also to third parties.
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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, "...
May 2011
The Law for the Promotion of microcredit proposed by the government is starting to make sense for the private sector.
For the Nicaraguan Association of Microfinance Institutions (ASOMIF), discussion of the governmental law is starting to find more points in common than differences with regards to the current needs of the sector, and is progressing well.
July 2010
The sector expects a slight improvement in the second half of the year after two years of steep decline.
René Romero, president of the Nicaraguan association of micro-finance institutions (Asomif), commented that evidence of the recovery is that some international institutions have started approving loans again.
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