An independent economist described the decision of the Nicaraguan government to cancel the legal personality of the Association of Private Banks of Nicaragua (asobanp), which brings together Banco de Finanzas (BDF), Banco Ficohsa, BAC Credomatic, Banco Lafise, Banpro and Avanz Nicaragua.
Ortega’s order, through the Ministry of the Interior (Migob), was given this Friday, February 3, through ministerial agreement number 05-2023 published this morning in La Gaceta, which includes another 16 non-governmental organizations.
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The respondent considers that for this decision it was important that in 2019 Asobanp positioned itself against the tax agreement reform law proposed by the Executive.
“Let’s remember that there is a regulatory entity that is the siboif —Superintendence of Banks and Other Financial Institutions— and in some way they are restricting their freedom of association,” said the expert.
Regarding Migob’s arguments to cancel the legal personality, arguing that both Asobanp and the other 16 NGOs failed to comply with their obligations and did not report their Financial Statements according to fiscal periods, in addition to having their boards of directors outdated, the economist said that the Association of Banks Privados has existed for more than 20 years and the dictatorship “never looked” at the alleged non-compliance.
One of the doubts, which according to the source consulted arises now that Ortega will outlaw Asobanp, is that if the government argues that there is a business concentration that is affecting the public, “Why don’t they endorse it with a pro-competition study with Siboif in such a way that they limit its action? but not to make it illegal,” he said.
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“What I think is that – the Ortega administration – had already been in its sights since 2019, when Asobanp officially stated that it was against the reform of the tax agreement law,” he stressed.
In the opinion of the consulted, the Nicaraguan government “is closing ranks to be able to eliminate any associative initiative; the problem is that it is messing with big capital”.
Does not affect affiliated banks
Regarding the possible effects that the different banks that belong to Asobanp would have once it is outlawed, the expert explained that the banking entities “will continue to work normally, because Siboif will continue to regulate them individually.”
“The situation is that the banks are being taken away from the possibility of reaching an agreement through this association and now they have to face the regulator that is Siboif,” he said.
He added that the Ortega and Murillo dictatorship is applying to the banks “the Machiavelli principle: “divide your enemy and you will win”, that is, that the banks will no longer have the possibility of having joint positions as the Association of Banks Private».
Regarding the danger that Nicaraguan money is in, the expert stated that there is no risk because from the legal point of view each bank is independent “and has its commitment to the client.”
“I believe that people have to be calm, put their money in banks and cover themselves, although currently there are many related to banks such as financial fraud, the surcharge they impose,” he stressed.
Ortega can create his own association of banks
Another of the aspects that the economist pointed out is that with the illegalization of Asobanp, the Nicaraguan dictatorship “intends to create a kind of association of banks related to the government».
«It may be that an association related to the State is created, as was done with Cosep, where the government replaced it at the minimum wage negotiating table with Conimipyme (Nicaraguan Council of Micro, Small and Medium Enterprises) which is one more akin to the government,” he said.
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Faced with the possibility that the banks want to appeal or form another association, the source argued that from the legal point of view it is possible, “but from the real point of view that is not possible that has to weigh on the mechanism of the National Assembly and there the government has a steamroller —of Sandinista deputies— and they are going to say no”.
According to the information on the Asobanp website, the organization “was founded on June 23, 1993. On April 12, 1994, the National Assembly of Nicaragua granted it its Legal Status as a non-profit Civil Association, through Decree 743, published in La Gaceta Official Gazette No. 117 of June 23, 1994. On July 29, 1994, the Association of Private Banks of Nicaragua was registered in the Registry of Associations of the Department of Registration and Control of Associations of the Ministry of the Interior of Nicaragua.
