Nicaragua: Microfinancers Looking For Loans

The possibility of external funding being log jammed making it impossible to use in programs for 2012 has led the Association of Microfinancers in Nicaragua to seek alternative financing nationwide.

Next year, they aim to grant more than $70 million in loans to small companies in various sectors such as agriculture, services and trade.

An article by Lucía Navas in laprensa.com.ni review states: "The global crisis of 2008 and 2009, coupled with the problems of the “No Pago” (Non-Payment) Movement, has affected microfinancing in Nicaragua."

Source: laprensa.com.ni

More on this topic

Lack of Capital in Microfinancers

April 2012

In Nicaragua, the ‘No Pago’ (Non Payment) movement has generated such distrust in international sources of finance that this year credit lines -which were $80 million-, have barely reached $5 million.

MFIs received less than $5 million in the first quarter of 2012 from international lending institutions, which directly affects their ability to offer more microloans, said Alfredo Alaniz, executive director of the Association of Microfinance Institutions (ASOMIF).

Nicaragua's Country Risk Affects Micro-financing

August 2010

The "No Payment" movement is scaring US and European investors, threatening the arrival of $70 million worth of funds for micro finance companies.

"In the last Central American Microfinance Conference the challenges and opportunities faced by the sector were discussed and the Guatemalan moderator, Reynold Walter, concluded by highlighting that governments should discourage 'no payment' movements, which received a round of applause from the attendees.

Microcredit Grows in Guatemala

April 2012

Between 2010 and 2011 the microfinance portfolio increased by 23%, going from $84 million to $104 million, averaging $529 per loan.

From the Journal of the Chamber of Industry of Guatemala:

Microfinance institutions in Guatemala maintain a dynamic support for the development and growth of thousands of micro and small businesses around the country, especially in rural areas.

Micro-finance is booming in Nicaragua

July 2008

Micro-finance has grown rapidly in Nicaragua over the last decade. Between the end of 1999 and the end of last year, the total micro-credit portfolio grew at an average 19.4 percent a year, while the number of clients grew by 25 percent a year, according to industry statistics.

Most of the loans have been made to small farmers and artisans who are usually unable to borrow money from the commercial banks.