The Faster Times website has reported that nine Nicaraguan farmers were sentenced to prison terms of three to five years for attacking staff of the Local Development Fund, a Nicaraguan microfinance institution. The farmers were convicted of shooting at the workers and smashing their vehicle in May in the rural town of Matiguas. Unrest has sporadically erupted in the region since President Daniel Ortega called on borrowers last year to pressure microfinance banks for lower interest rates by holding protests. Roberto Larios reportedly told The Faster Times that “The judicial branch’s position is that the law must be applied to stop the culture of not paying debts…. There’s an explicit order from the Supreme Court to all judges in the country to strictly apply laws in cases of debt defaulters.” Interest rates in Nicaragua range up to 20 percent, but a proposed law would limit them at 12 percent per year.
Sources and Resources:
The Faster Times article, dated December 1, 2009: Nicaraguan Farmers Sentenced For Armed Attack on Debt Collectors:
http://thefastertimes.com/centralamerica/2009/12/01/nicaraguan-farmers-sentenced-for-armed-attack-on-debt-collectors/
MicroCapital article, dated August 11, 2008: Violent Protests Against Nicaraguan Microfinance Institution:
https://www.microcapital.org/microcapital-story-violent-protests-against-nicaraguan-microfinance-institution/
Similar Posts:
- MICROCAPITAL BRIEF: Activists Block Access to 3 Microfinance Institution Branches in Nepal, Accusing MFIs of Causing Over-indebtedness
- MICROCAPITAL BRIEF: Abler Nordic Leads $10m Equity, Debt Investment Round for Ergos, Agtech Offering Crop Storage in India
- MICROCAPITAL BRIEF: UNI2 Microcrédito of Colombia Raises $3m in Debt from Triodos Microfinance Fund, Triodos Fair Share Fund
- SPECIAL REPORT: Small Is Beautiful – Sustainable Agriculture Finance
- MICROCAPITAL BRIEF: DFC to Support Mastercard Community Pass Program to Expand Access to Digital Services in Africa, India
