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NICARAGUA - TEMPORARY RULE FOR THE AMENDMENT OF ARTICLE 15 OF CREDIT CARD OPERATIONS REGULATIONS ENTERS INTO FORCE

Apr/2022

On March 29, 2022, the Board of Directors of the Superintendence of Banks and Other Financial Institutions (SIBOIF) published Resolution No. CD-SIBOIF-1305-1-MAR29-2022, Temporary Rule for the Amendment of Article 15 of Credit Card Operations Regulations.

 

Said Amendment modifies the amortization percentage that cardholders must pay to cancel the minimum payment of their credit cards within each cycle, which will be 2% of the principal balance, plus current and delinquent interest.

 

Likewise, the issuer may charge a pre-established minimum fee when the above sum of the minimum payment results in a lower amount.  The above will be informed by credit card issuers to their customers.

 

This Amendment is of a temporary nature, which means that once its effective period ends on March 31, 2023, the percentage for the minimum payment will be the same as the original Rule, no less than 4% of the principal balance plus current and delinquent interest, and a pre-established minimum fee may also be charged in the event that the aforementioned sum is lower.  

 

These modifications to the Credit Card Operations Regulations seek to provide greater flexibility to cardholders at the time of paying off their loans with financial institutions and to help users of the Nicaraguan banking system to avoid credit default.   

 

If you would like to know more, please do not hesitate to contact us.

 

 

Bertha Argüello

Partner | bertha.arguello@ariaslaw.com

 

Gabriel Álvarez Rocha

Associate | gabriel.alvarez@ariaslaw.com


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