Nicaragua Bank Credit Still Declining – Nicaragua News

Banking News

Up to July 2019, the gross portfolio of the financial system totaled US$3.966 billion, 20% less than in the same month in 2018, partially because of the negative performance of commercial, industrial and personal credit.

During the seventh month of the year in terms of composition, the current loan portfolio represented 88.7% of the gross portfolio, while the portfolio at risk represented 11.3%. On the other hand, provisions were equivalent to 2.1 times the past-due portfolio and 53.4% of the non-performing portfolio, reported the Banco Central de Nicaragua (BCN) – Central Bank of Nicaragua.

The document of the BCN states that “… By economic sector, the commercial and personal portfolio accounted for 52.4% of the total, mortgage 17.1% and industrial 11.8%.

Liabilities reflected a balance of 182,479.2 million Córdobas (a 19.1% year-on-year reduction) and were integrated by obligations with the public (66.5%) and with other financial institutions and international organizations (24.0%), mainly.

Total obligations with the public amounted to 121,276.0 million Córdobas, of which 72.9% corresponded to foreign currency obligations. On the other hand, those denominated in national currency corresponded to 26.5%, and interest to 0.6%.”

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