, Nicaragua: flexibility measures in the Microfinance Sector as a result of the COVID19

Nicaragua: flexibility measures in the Microfinance Sector as a result of the COVID19

Last Friday, June 12, 2020, the Resolution CD-CONAMI-008-01MAY26-2020 (Reform Rule on Credit Risk Management for Microfinance Institutions), issued by the National Commission of Microfinance (“CONAMI” by its acronym in Spanish), was published in The Official Gazette Nº 107.

The aforesaid Resolution comes to reform a series of provisions from the Resolution CD-CONAMI-025-02OCT07-2013 and arises in the context of the COVID19 pandemic. Its purpose is to facilitate to those microfinance institutions regulated by CONAMI to adopt flexibility measures, by allowing the modification of the contractual conditions subscribed with their clients. The above with the goal of supporting their debtors, so that they can meet their payments, taking the prevailing uncertainty as a factor to influence flexibility.

The reforms introduced by the Resolution will allow microfinance institutions to refinance their loans, the novation of credit operations, extensions for the payment of a loan, among other elements.

We must clarify that the reforms have a temporary basis, and will enter into force starting on July 1, 2020, until June 30, 2021. After that date, the original content of the Resolution CD-CONAMI-025-02OCT07-2013 will apply.

You can find the Resolution in the following link (only available in Spanish).

We as CENTRAL LAW have an experienced team of lawyers who will be able to advise you in the most diligent and comprehensive manner, in the face of the legal effects that the COVID19 pandemic may have on your company.

If you require more information in this regard, feel free to contact CENTRAL LAW at the following email address: info@central-law.com.

Please remember to observe all sanitary measures in order to take care of yourself and your loved ones.

Avil Ramírez Mayorga

Associate

CENTRAL LAW

Nicaragua

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