The frozen funds amount to about $30 million, representing 20% of the total portfolio balance of microfinancers belonging to the Nicaraguan Association of Microfinance Institutions, ASOMIF.
"According the president of ASOMIF, Rene Romero, the effects of the global financial crisis and the ‘No-Pago’ (Non-Payment) Movement are weighing on the country's microfinance system, so much so that international creditors are waiting for Nicaraguan institutions to improve their internal indicators before going ahead with disbursements", reported Elnuevodiario.com.ni
Against this background, ASOMIF has taken his measures in order to ensure the continuity of microfinancer’s operations, including a reduction in disbursements to institutions.
"ASOMIF this year had planned to disburse $140 million, obviously, the disbursement rate has fallen because we have fewer resources to operate with."
Source: elnuevodiario.com.ni
More on this topic
January 2012
On January 11, 2012 the Law on Promotion and Regulation of Microfinancers comes into force.
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.
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, "...
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.
April 2010
Asomif will submit a plea for unconstitutionality at the Supreme Court of Justice.
René Romero, president of Asomif, the Nicaraguan Association of Microfinance Institutions, assured that despite presenting this plea, they will observe the new law known as “Moratory Law”, which sets conditions for negotiating debt covenants between debtors and microfinance institutions.
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