Country Commercial Guide for U.S. Companies

Chapter 7: Trade and Project Financing

International Copyright, U.S. Department of State, 2008. All rights reserved outside of the United States.

• How Do I Get Paid (Methods of Payment)
• How Does the Banking System Operate
• Foreign Exchange Controls
• U.S. Banks and Local Correspondent Banks
• Project Financing
  

How Do I Get Paid (Methods of Payment)                 Return to top

For commercial transactions, requiring cash in advance or negotiating a letter of credit is advisable until a payment track record is established. 

 

How Does the Banking System Operate                     Return to top

See Chapter 6: Investment Climate Statement, Efficient Capital Markets and Portfolio Investment for an overview of the financial sector.

 

Foreign Exchange Controls                                     Return to top

There are no foreign exchange controls. See Chapter 6: Investment Climate Statement, Conversion and Transfer Policies for more information on foreign currency transactions.

 

U.S. Banks and Local Correspondent Banks               Return to top

The following banks in Nicaragua have correspondent relationships with banks operating in the United States:

Banco de América Central (BAC)
Edificio BAC, Km 4 ½ Carretera a Masaya
Tel: 505-274-4444
Fax: 505-274-4620

Banco de Crédito Centroamericano (BANCENTRO)
Centro Lafise, Km 4 ½ Carretera a Masaya
Tel: 505-255-27777
Fax: 278-6001
Email: info@bancentro.com.ni 

BANCO UNO
Rotonda El Güegüense 25 vrs. Abajo, Managua
Tel: 505-255-8000
Fax: 505-266-8796
Email: uno-info@grupo-uno.com

Banco de la Producción (BANPRO)
Km. 4 Carretera a Masaya, Contiguo a Hotel Princess
Tel: 505-277-2627
Fax: 505-267-0612
Email: servicio@banpro.com.ni

Banco de Finanzas (BDF)
Esquina opuesta Hotel Crowne Plaza, Managua
Tel: 505-222-2444
Fax: 505-228-3056
Email: bdf@bdfnet.com

HSBC
Km. 4 ½ Carretera a Masaya
Tel: 505-270-1200
Fax: 505-270-1127
Email: subanco@hsbc.com.ni

Banco ProCredit
Rotonda Güegüense 75 vrs. al Sur
Tel: 505-255-7676
Fax: 505-268-1630

 

Project Financing                                                  Return to top

Long-term financing is readily available as international banks introduce new products for the local market.  Average loan rates are generally much higher than those available to U.S. businesses from banks outside Nicaragua. Loans are available both in dollars and córdobas, the local currency.  Significant collateral is required to borrow locally, which may pose a constraint for businesses that lack assets in Nicaragua. Real estate mortgages are issued for terms of up to 20 years. The equity market is extremely thin and not a reliable source of project financing.

The U.S. Overseas Private Investment Corporation, Export-Import Bank of the United States, and the U.S. Trade and Development Agency are potential sources of project financing. Contracts to implement Nicaragua’s compact with the Millennium Challenge Corporation are open to bidding from U.S. businesses. The World Bank International Finance Corporation, the Multilateral Investment Guarantee Agency, the Inter-American Development Bank, and the Central American Bank of Economic Integration are also potential sources of project finance in Nicaragua.

The U.S. Embassy, Managua, Economic/Commercial Section takes no responsibility for actions readers may take based on the information in this guide. Readers should always conduct their own market research and due diligence before entering into any commercial arrangement.