MICROCAPITAL BRIEF: Nicaraguan Microfinance Institution Banco del Exito (Banex) to be Liquidated

Nicaraguan banking authorities are expected to announce the liquidation of Banco del Exito (Banex), a Nicaraguan microfinance institution, in the next several days. Until recently, Banex was reportedly the largest Nicaraguan microfinance institution.

Due to the “No Payment Movement” (“No Pago”) which began in Nicaragua in November 2009, investor confidence in the microfinance sector was reduced, which was further exacerbated when MicroRate, a US-based microfinance institution rating agency, announced a countrywide ratings withdrawal in Nicaragua. Banex subsequently suffered severe portfolio deterioration and underwent a financial restructuring; however, these efforts have not stabilized the organization.

Banex reported a gross loan portfolio of USD 137.8 million and total assets of USD 178.5 million as of fiscal 2008, according to the Microfinance Information Exchange.

By Jennifer Shevock, Research Associate

About MicroRate:
MicroRate was founded in the US in 1997 with the intent to objectively evaluate microfinance institutions (MFIs), thereby increasing transparency. MicroRate claims to perform its evaluations not through “rigid rating formulas,” but through “evaluation of critical risk.” As of 2010, the organization has offices in the United States, Peru and Morocco.

Sources and Additional Resources:
[1] Press release provided to MicroCapital by MicroRate.

MICROCAPITAL BRIEF: “Microfinance Information Exchange Releases Benchmarking Reports on Central America, Nicaragua and Azerbaijan” December 14, 2009.
https://www.microcapital.org/microcapital-brief-microfinance-information-exchange-releases-benchmarking-reports-on-central-america-nicaragua-and-azerbaijan/#more-4173

MICROCAPITAL NEWS WIRE: “Nicaragua: “No Payment Movement” Attacking Microfinance Industry” November 6, 2010. https://www.microcapital.org/news-wire-nicaragua-no-payment-movement-attacking-microfinance-industry/

MICROCAPITAL PRESS RELEASE: “Nicaragua: Banex Gives More Opportunities” October 29, 2008. https://www.microcapital.org/press-release-nicaragua-banex-gives-more-opportunities/

Microfinance Information Exchange: Banex: http://www.mixmarket.org/mfi/banex-ex-findesa

MicroCapital Universe: MicroRate: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MicroRate

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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