2. Access to Credit
2.1 Banks
2.2 Other Sources
2.3 Credit Bureau
In-Country Assessment Information

2. Access to Credit


Goal – An efficient, transparent financial sector that provides a broad range of citizens with access to multiple forms of competitive credit so that they can start businesses, build wealth, and purchase property


2.1 Banks

Core Question: Are traditional banking services robust and extensive enough to serve the needs of the population to help them build wealth and purchase property?  Yes – Strong.


2.1.1   How easy is it to obtain a bank loan? Strong – Ranking 42 out of 148; Score 3.25 out of 7.


2.1.2   How sound are the country’s banks? Weak – Ranking 97 out of 148; Score 4.47 out of 7.

Source: The Global Competitiveness Report 2013-2014, World Economic Forum

2.1.3  Microlending

Status – Strong Microfinance allows citizens without traditional creditworthiness to build a credit history. How many microfinance institutions are operating in the country? 35 active institutions, with numerous 4-5 Star Ratings. FDL and Banex are the largest. What is the number of active borrowers per institution? (FDL – 58,000) (Banex – 24,000) (Financiera Fama – ) (ProCredit-) (NIC-)

Source: Microfinance Information Exchange


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2.2 Other Sources

Core Question: Are entrepreneurs free to raise capital outside the banking system including venture capital and/or by issuing stock in a well-regulated stock exchange? No, Weak. Wealth is concentrated is land-holding minority.

Financial Freedom

2.2.1   How much control does the government exert over financial services? Weak for entrepreneurs – Score 50 out of 100 – No change from previous year.

Source: Index of Economic Freedom 2014, Heritage Foundation

Venture Capital

2.2.2   How easy is it for entrepreneurs to find venture capital?
Very Strong – 29 out of 148; Score 3.29 out of 7, a boom in Costa Rican property markets has spurred interest in Nicaragua (neighbor). This is a very recent development.

Equity Investors

2.2.3   How easy is it to raise money by issuing shares on the stock market? Weak – 79 out of 148; Score 3.35 out of 7.

Source: The Global Competitiveness Report 2013-2014, World Economic Forum


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2.3 Credit Bureau/

Core Question: Is comprehensive credit information available through public and private credit bureaus? Weak.

Overall Ranking 109 out of 188.


2.3.1   What is the depth of information available in credit bureaus? Very Strong – Score – 5 out of 6 with a higher number indicating more information is available


2.3.2   What is the extent of public credit registry coverage? Strong, Score of .16


2.3.3   What is the extent of private credit registry coverage? Strong, Score of .323

Source: Doing Business 2014 – Getting Credit, World Bank


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In-Country Assessment Information

FQ 8. How available are mortgage loans for purchasing commercial property (office, retail, industrial and logistics), who is the typical user and what are the prevailing trends?

FQ 9. What are the interest rates, term and loan-to-value ratios?

FQ 10. In addition to microloans, to what extent are microenterprises (5 or fewer employees) active in the country? Approximately what percentage are formally registered firms?

FQ 11. What services other than loans such as insurance, funds transfers, and business development training are available from microfinance organizations for formal businesses?

FQ 12. What professional financial services are available outside state owned banks including insurance, credit cards and investment management?

FQ 13. What has been the appreciation (or depreciation) rate for commercial property over the last several years?

FQ 14. How available is seed money or angel investors for the start up of small businesses?

FQ 15. Do small businesses have access to credit information about potential customers?

FQ 16. Can businesses gain access to information about them contained in credit bureaus and correct inaccuracies?